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, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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