This article first appeared on GuruFocus.
Bank of America said investors are sharpening their focus on how artificial intelligence is reshaping competition among Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL), CoreWeave (NASDAQ:CRWV) and Nebius (NASDAQ:NBIS), with market share, valuation and long-term demand among the main concerns, according to a note from analysts led by Tal Liani.
For Microsoft, the bank said some investors remain skeptical about Copilot adoption and the company’s ability to defend its AI position as tools from OpenAI, Anthropic and Google gain traction. BofA argued that Microsoft’s wider enterprise software footprint and cloud infrastructure could still help it bundle AI into existing products and support revenue growth.
On Oracle, the analysts said investors remain attracted to the long-term story but want more evidence that data center capacity is coming online as planned. They said the stock already reflects many of the risks, while upcoming capacity additions could ease some of the pressure.
BofA said Neoclouds such as Nebius and CoreWeave are also facing questions about how to value them and whether their models can last once hyperscalers add more in-house capacity. The bank said Nebius appears to have a clearer software strategy, while CoreWeave still needs to sharpen its long-term message.
