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Raymond James Calls Take-Two Interactive Software, Inc. (TTWO) Pullback Overdone Amid AI Concerns

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is among the 8 Most Promising Metaverse Stocks to Buy According to Hedge Funds.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the most promising stocks.

TheFly reported on February 10 that Raymond James raised its rating on TTWO to Strong Buy from Outperform and maintained its $285 price target. The upgrade comes after the decline in the stock’s price, which is driven by concerns surrounding the launch of Google’s Project Genie and the potential impact of AI-driven content creation tools on established game publishers. The firm believes the recent pullback is excessive and sees the current price level as offering a more favorable risk-reward profile, particularly in light of the company’s solid fiscal third-quarter performance.

Additionally, it was reported on February 18 that approximately 11 million Take-Two Interactive Software, Inc. (NASDAQ:TTWO) shares, valued at around $3 billion, were transferred from Saudi Arabia’s Public Investment Fund to Savvy Games Group. Although the transaction shifts the holdings to a different entity, it does not materially change ownership, as Savvy Games Group is fully owned by the PIF. In effect, the shares remain under Saudi control.

The primary purpose of the move appears to be strengthening Savvy Games Group’s role within the international gaming sector by placing these assets directly under its structure. This step aligns with Saudi Arabia’s broader strategy to reinforce its presence and influence in the global video game industry through a more focused gaming subsidiary.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a leading video game publisher behind immersive franchises like Grand Theft Auto and NBA 2K.  It builds expansive virtual worlds with social interaction, digital economies, and user engagement and positions it as a key player in evolving interactive online ecosystems.

While we acknowledge the potential of TTWO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TTWO and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Unstoppable Dividend Stocks to Buy According to Analysts and Dividend Champions, Contenders and Challengers list: 15 Highest Yielding Stocks.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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