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Yahoo
6 hours ago
- Business
- Yahoo
2 Popular AI Stocks to Sell Before They Drop 30% and 55%, According to Select Wall Street Analysts
Shares of Palantir and Nvidia have rocketed higher as artificial intelligence has become a major investment theme , but certain Wall Street analysts think it's time to sell. Palantir is a recognized leader in artificial intelligence and machine learnings software, but it's also the most expensive software stock on the market by a wide margin. Nvidia faces headwinds in capacity constraints and chip export restrictions, but the stock trades at a reasonable price compared to forward earnings estimates. 10 stocks we like better than Palantir Technologies › We are more than two years into the artificial intelligence trade, and Palantir Technologies (NASDAQ: PLTR) and Nvidia (NASDAQ: NVDA) have been standout performers. Their share prices since January 2023 have increased 2,000% and 875%, respectively. But certain Wall Street analysts think it's time to sell. Brent Thill at Jefferies has a sell rating on Palantir. His target price of $60 per share implies 55% downside from the current share price of $136. Jay Goldberg at Seaport Research has a sell rating on Nvidia. His target price of $100 per share implies 30% downside from its current share price of $143. Wall Street seems to agree with Brent Thill where Palantir is concerned. The median target price among 28 analysts is $110 per share, which implies 19% downside. But Jay Goldberg has the lone sell rating on Nvidia, and the median target price among 69 analysts is $175 per share, which implies 22% upside. Here's what investors should know about Palantir and Nvidia. Palantir develops analytics platforms that help customers make sense of complex information. Its software drives efficiency with nuanced insights that improve operational decision-making. That value proposition is relevant across virtually every industries. Palantir helps banks prevent fraud, manufacturers fortify supply chains, retailers optimize inventory, and defense agencies track and target enemy combatants. Several independent analysts recently recognized the company as a technology leader in artificial intelligence and machine learning software. "Palantir is quietly becoming one of the largest players in this market," wrote Mike Gualtieri at Forrester Research. And CEO Alex Karp says unique software architecture makes Palantir one of the only companies that can move AI projects from prototype to production. Palantir reported solid first-quarter financial results. Revenue increased 39% to $884 million, the seventh consecutive acceleration. And non-GAAP net income increased 62% to $0.13 per diluted share. Additionally, the company raised full-year guidance, such that revenue is now projected to grow 36% in 2025. Management said demand for its artificial intelligence platform was a key tailwind. Brent Thill at Jefferies has consistently praised Palantir for its technology and execution. "It's a great company. I'm not disputing the fundamentals," he said. But Thill has a problem with the valuation. Palantir has a forward price-to-sales (PS) ratio above 80, which makes it the most expensive software stock on the market. In fact, Thill says its price could fall 70% and it would still be the most expensive software stock. Here's my take: I agree wholeheartedly. Palantir is an excellent business that could be worth more in the future. But the risk-reward profile is skewed toward risk today. Shareholders could suffer huge losses if the broader stock market loses momentum or Palantir fails to meet lofty expectations. The most prudent strategy is to trim large positions and avoid buying shares until the valuation is tolerable. Graphics processing units (GPUs) accelerate complex data center workloads like training machine learning models and running artificial intelligence applications. Nvidia makes the most coveted GPUs on the market. They are not only faster than products from other chipmakers, but also Nvidia has created an unparalleled ecosystem of software tools called CUDA to support developers. Nvidia reported encouraging financial results in the first quarter of fiscal 2026, which ended in April. Revenue rose 69% to $44 billion amid persistent demand for AI infrastructure, and non-GAAP net income increase 33% to $0.81 per diluted share. Importantly, the bottom line increased more slowly than the top line due to the production ramp of the Blackwell chip and inventory write-downs related to export restrictions. Jay Goldberg at Seaport Research recently discussed his sell rating on Nvidia with Yahoo Finance. "It's a good company that makes great products," he noted. "But they have said already their newest line of products, the Blackwell line, is sold out for the year." That leaves little room for upside in his estimation because Nvidia will be hard pressed to beat consensus estimates if it's capacity constrained. So, bias shifts to the downside. Goldberg also noted increasingly severe export controls imposed by the Biden and Trump administrations. Initially, Nvidia was unable to sell its most advanced products to China, but newer restrictions effectively bar the company from doing any business in the country. CEO Jensen Huang says the export controls have been a failure, and Nvidia will miss out on hundreds of billions of dollars in revenue. While I think Goldberg is right to be concerned about export restrictions, I am less worried about Blackwell GPUs being sold out this year. The market will likely look past temporary capacity constraints so long as the underlying demand appears strong. Also, Wall Street expects Nvidia's earnings to increase at 40% annually through fiscal 2027, which ends in January 2027. That makes the current valuation of 45 times earnings look reasonable. Here's my take: I think patient shareholders should sit tight. I see no reason to sell Nvidia. The semiconductor industry is cyclical, which can lead to prolonged drawdowns in the stock, but the investment thesis is solid. Data center GPU sales are expected to increase at 29% annually through 2030, and AI spending is forecast to grow at 36% annually over the same period. Nvidia is ideally positioned to benefit. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor's total average return is 998% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Trevor Jennewine has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Jefferies Financial Group, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy. 2 Popular AI Stocks to Sell Before They Drop 30% and 55%, According to Select Wall Street Analysts was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
a day ago
- Business
- Globe and Mail
2 Popular AI Stocks to Sell Before They Drop 30% and 55%, According to Select Wall Street Analysts
We are more than two years into the artificial intelligence trade, and Palantir Technologies (NASDAQ: PLTR) and Nvidia (NASDAQ: NVDA) have been standout performers. Their share prices since January 2023 have increased 2,000% and 875%, respectively. But certain Wall Street analysts think it's time to sell. Brent Thill at Jefferies has a sell rating on Palantir. His target price of $60 per share implies 55% downside from the current share price of $136. Jay Goldberg at Seaport Research has a sell rating on Nvidia. His target price of $100 per share implies 30% downside from its current share price of $143. Wall Street seems to agree with Brent Thill where Palantir is concerned. The median target price among 28 analysts is $110 per share, which implies 19% downside. But Jay Goldberg has the lone sell rating on Nvidia, and the median target price among 69 analysts is $175 per share, which implies 22% upside. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Here's what investors should know about Palantir and Nvidia. Palantir Technologies: 55% implied downside Palantir develops analytics platforms that help customers make sense of complex information. Its software drives efficiency with nuanced insights that improve operational decision-making. That value proposition is relevant across virtually every industries. Palantir helps banks prevent fraud, manufacturers fortify supply chains, retailers optimize inventory, and defense agencies track and target enemy combatants. Several independent analysts recently recognized the company as a technology leader in artificial intelligence and machine learning software. "Palantir is quietly becoming one of the largest players in this market," wrote Mike Gualtieri at Forrester Research. And CEO Alex Karp says unique software architecture makes Palantir one of the only companies that can move AI projects from prototype to production. Palantir reported solid first-quarter financial results. Revenue increased 39% to $884 million, the seventh consecutive acceleration. And non-GAAP net income increased 62% to $0.13 per diluted share. Additionally, the company raised full-year guidance, such that revenue is now projected to grow 36% in 2025. Management said demand for its artificial intelligence platform was a key tailwind. Brent Thill at Jefferies has consistently praised Palantir for its technology and execution. "It's a great company. I'm not disputing the fundamentals," he said. But Thill has a problem with the valuation. Palantir has a forward price-to-sales (PS) ratio above 80, which makes it the most expensive software stock on the market. In fact, Thill says its price could fall 70% and it would still be the most expensive software stock. Here's my take: I agree wholeheartedly. Palantir is an excellent business that could be worth more in the future. But the risk-reward profile is skewed toward risk today. Shareholders could suffer huge losses if the broader stock market loses momentum or Palantir fails to meet lofty expectations. The most prudent strategy is to trim large positions and avoid buying shares until the valuation is tolerable. Nvidia: 30% implied downside Graphics processing units (GPUs) accelerate complex data center workloads like training machine learning models and running artificial intelligence applications. Nvidia makes the most coveted GPUs on the market. They are not only faster than products from other chipmakers, but also Nvidia has created an unparalleled ecosystem of software tools called CUDA to support developers. Nvidia reported encouraging financial results in the first quarter of fiscal 2026, which ended in April. Revenue rose 69% to $44 billion amid persistent demand for AI infrastructure, and non-GAAP net income increase 33% to $0.81 per diluted share. Importantly, the bottom line increased more slowly than the top line due to the production ramp of the Blackwell chip and inventory write-downs related to export restrictions. Jay Goldberg at Seaport Research recently discussed his sell rating on Nvidia with Yahoo Finance. "It's a good company that makes great products," he noted. "But they have said already their newest line of products, the Blackwell line, is sold out for the year." That leaves little room for upside in his estimation because Nvidia will be hard pressed to beat consensus estimates if it's capacity constrained. So, bias shifts to the downside. Goldberg also noted increasingly severe export controls imposed by the Biden and Trump administrations. Initially, Nvidia was unable to sell its most advanced products to China, but newer restrictions effectively bar the company from doing any business in the country. CEO Jensen Huang says the export controls have been a failure, and Nvidia will miss out on hundreds of billions of dollars in revenue. While I think Goldberg is right to be concerned about export restrictions, I am less worried about Blackwell GPUs being sold out this year. The market will likely look past temporary capacity constraints so long as the underlying demand appears strong. Also, Wall Street expects Nvidia's earnings to increase at 40% annually through fiscal 2027, which ends in January 2027. That makes the current valuation of 45 times earnings look reasonable. Here's my take: I think patient shareholders should sit tight. I see no reason to sell Nvidia. The semiconductor industry is cyclical, which can lead to prolonged drawdowns in the stock, but the investment thesis is solid. Data center GPU sales are expected to increase at 29% annually through 2030, and AI spending is forecast to grow at 36% annually over the same period. Nvidia is ideally positioned to benefit. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor 's total average return is998% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
29-05-2025
- Business
- Yahoo
Seaport Joins Bullish Chorus on AVGO, Cites AI Edge and Tariff Resilience
Seaport Research analyst Jay Goldberg recently initiated coverage of Broadcom Inc. (NASDAQ:AVGO) with a Buy rating and $230 price target. Broadcom supplies semiconductor infrastructure software solutions. In an investor note, the analyst noted that Broadcom was one of the leading beneficiaries of the current AI spending boom, but its prospects were not well understood by the Street and not priced into the stock. Any time Nvidia loses share today it is to hyperscalers' internal chip designs and Broadcom is poised to make a lot of money helping them bring those chips to production, the analyst added. A technician working at a magnified microscope, developing a new integrated circuit. In addition to Seaport, other analysts are also bullish on Broadcom. For example, prominent investment advisory JP Morgan recently said in an investor note that as the cloud of tariffs looms over tech companies entering the earnings season, several semiconductor and semiconductor equipment companies stand out as top picks, including Broadcom. While we acknowledge the potential of AVGO, 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 AVGO and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
QCOM Mixed Growth Outlook Leads Seaport to Start Coverage with Neutral Call
Seaport Research analyst Jay Goldberg recently initiated coverage of QUALCOMM Incorporated (NASDAQ:QCOM) with a Neutral rating and no price target. QCOM develops and sells foundational technologies for the wireless industry. In an investor note, the analyst noted that Qualcomm's core market was not growing, and it was losing share there on multiple fronts. The analyst added that the company's efforts to diversify beyond mobile were mixed and would all take years to materialize. Seaport saw a lack of any serious near-term catalyst for the shares. A technician testing the latest 5G device, demonstrating the company's commitment to innovation. At the end of April, the firm forecasted fiscal Q3 revenues of $9.9 billion to $10.7 billion and non-GAAP EPS of $2.60 to $2.80. QCT revenues are expected to range between $8.7 billion and $9.3 billion, with year-over-year growth of approximately 12%, led by handsets, IoT, and automotive segments. This includes 10% growth in handset revenues and 15%-20% growth in IoT and automotive revenues. CFO Akash Palkhiwala has acknowledged ongoing monitoring of macroeconomic conditions, including tariffs, which are incorporated into the guidance. While we acknowledge the potential of QCOM, 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 QCOM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Toronto Sun
08-05-2025
- Politics
- Toronto Sun
CARNEY CON JOB! Two things PM must do to show he is not Trudeau
WATCH BELOW as the Sun's political columnist Jay Goldberg says PM Mark Carney has to show Canadians he is not Justin Trudeau. What do YOU think? Tweet and Facebook us! And don't forget to subscribe to our YouTube Channel. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Toronto Maple Leafs Columnists World Canada Soccer
