Latest news with #DanIves
Yahoo
4 hours ago
- Business
- Yahoo
Should You Buy Palantir Stock After Its 2,100% Gain Since 2023? This Wall Street Analyst Has a Shocking Answer.
Palantir currently has a market value of $335 billion, but Wedbush Securities analyst Dan Ives says it could be a trillion-dollar company within three years. Palantir reported strong financial results in the first quarter, notching its seventh straight acceleration in sales growth due to strong demand for its AI platform. Palantir currently trades at 114 times sales, a valuation so rich that the shares price could fall 70% and it would still be the most expensive stock in the S&P 500. 10 stocks we like better than Palantir Technologies › Palantir Technologies (NASDAQ: PLTR) hit its stride when demand for artificial intelligence (AI) exploded after the launch of ChatGPT. The stock has soared 2,100% since January 2023, the best performance in the S&P 500 (SNPINDEX: ^GSPC) during that period by a wide margin. Today, most Wall Street analysts see the stock as overvalued. The median target price is $110 per share, which implies 23% downside from its current share price of $143. But Dan Ives at Wedbush Securities has consistently gone against the grain and been proved right time and time again: In September, Ives raised his target to $45 per share when the Wall Street consensus was $25. In November, Ives moved his target to $75 per share when the Wall Street consensus was $28. In January, Ives bumped his target to $90 per share when the Wall Street consensus was $41. Ives last month raised his target price to $140 per share. That implies a little downside in the near term, but he still sees Palantir as one of the best AI stocks investors can own despite the elevated valuation. In fact, he thinks Palantir will be a trillion-dollar company within three years. That forecast implies 199% upside from its current market value of $335 billion. Here's what investors should know. The International Data Corp. estimates artificial intelligence (AI) platform spending will increase at 40% annually through 2028. Palantir quickly became one of the largest players in that market following the launch of its AIP product in 2023. AIP adds support for large language models to the company's data operations platforms, Foundry and Gotham, which lets clients apply generative AI to their operations. Palantir says its key differentiator is an ontology-based software architecture. To elaborate, its products are built around a framework that links digital information to real-world assets. Users can parse that information with machine learning models and other analytical tools to uncover insights and optimize decision-making. And the feedback loop created by the software drives continuous improvements in the system. Morningstar analyst Mark Giarelli earlier this year wrote, "The core ontology function and value proposition is that Palantir not only organizes and displays data, but it also creates prioritized, ranked data that can be quickly understood and interacted with, ultimately automating real-world efficiency gains." Palantir reported impressive first-quarter financial results. Revenue increased 39% to $884 million, the seventh consecutive acceleration, driven by particularly strong sales growth in the U.S. commercial and government segments. Non-GAAP net income jumped 62% to $0.13 per diluted share. Management credited the strong results to demand for AIP and raised its full-year guidance, such that revenue is expected to increase 36% in 2025. Looking ahead, investors have good reason to think Palantir can maintain that momentum for the foreseeable future. Chief Technology Officer Shyam Sankar told analysts on the quarterly earnings call, "Our foundational investments in ontology and infrastructure have positioned us to uniquely deliver on AI demand now and in the years ahead." Palantir's business is firing on all cylinders, but the stock currently trades at 310 times adjusted earnings. That valuation is especially hard to justify because the Wall Street consensus says adjusted earnings will grow at 31% annually through 2026. Those numbers give a price-to-earnings-to-growth (PEG) ratio of 10. Multiples above 2 or 3 are usually considered overvalued. To further impress that point, consider this: Palantir currently trades at 114 times sales. The next closest stock in the S&P 500 is Texas Pacific Land, which currently trades at 33 times sales. The means Palantir could fall 70% and it would still be the most expensive stock in the S&P 500 as measured by its price-to-sales ratio. Here is the bottom line: I think Palantir could be a trillion-dollar company in the future, but I am skeptical about the three-year timeline Dan Ives proposed. The stock is outrageously expensive, so even the smallest speed bump could have a catastrophic impact on its share price. With so much downside risk, shareholders should keep their positions small, and prospective investors should wait for a much cheaper entry point. 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 $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% 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 23, 2025 Trevor Jennewine has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. Should You Buy Palantir Stock After Its 2,100% Gain Since 2023? This Wall Street Analyst Has a Shocking Answer. was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
18 hours ago
- Business
- Yahoo
Nvidia Stock Is Racing Toward $4 TRILLION. How Should You Play NVDA Here?
Nvidia (NVDA) shares have already printed a new all-time high this week – but a senior Wedbush analyst believes the momentum will only accelerate. According to Dan Ives, unmatched demand for AI chips and continued sovereign investments in artificial intelligence infrastructure could help NVDA become the world's first $4 trillion firm this summer. Dear Nvidia Stock Fans, Watch This Event Today Closely 3 ETFs Offering Juicy Dividend Yields of 15% or Higher Nvidia Could Send This AI Networking Stock 6 Feet Underground Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. At the time of writing, Nvidia stock is up some 80% versus its year-to-date low in early April. Wedbush remains uber bullish on NVDA shares since it sees the chipmaker as 'the foundation of [the] AI revolution.' In his research note, Ives reiterated that artificial intelligence – 'the biggest tech trend' of the 21st century – is still in its early innings only. On Friday, the analyst reiterated his 'Outperform' rating on the AI stock, saying 'they are the only game in town with their chips the new gold and oil.' Wedbush currently has a $175 price target on Nvidia, which indicates potential upside of another 14% from current levels. Nvidia stock remains attractive despite its massive rally since early April mostly because it offers exposure to all verticals of artificial intelligence (hardware and software). That made Jordan Klein, a Mizuho analyst, count NVDA among the 'three horsemen' of the global semiconductor industry (other two being Broadcom (AVGO) and Taiwan Semi (TSM)) in a recent interview with CNBC. Klein recommended sticking with the AI stock as the Nasdaq-listed firm is strongly positioned for 'a big improvement or acceleration in their sequential growth into the back half' of 2025. Nvidia's central role in enabling the AI revolution is keeping the rest of Wall Street constructive on its stock as well. According to Barchart, analysts currently have a consensus 'Strong Buy' rating on NVDA shares with the mean target of nearly $177 indicating potential upside of some 15% from current levels. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
21 hours ago
- Business
- Yahoo
Wedbush Sees $5 Trillion in Sight for Nvidia, Microsoft in AI Boom
June 27 - Wedbush Securities sees Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT) joining the $4 trillion market-cap club this summer and potentially topping $5 trillion over the next 18 months, according to a Friday note to clients. Analyst Dan Ives said both companies are poster children of the AI revolution, marking them as foundational drivers in what he calls the biggest tech trend in 25 years. He highlighted that Nvidia reclaimed its position as the world's most valuable firm this week, closing at a $3.78 trillion valuation, while Microsoft stood at about $3.7 trillion. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Apple (NASDAQ:AAPL) remains the only other company above $3 trillion. Ives pointed to explosive AI use cases, cybersecurity, software, semiconductors and autonomous robotics, as key growth themes. He noted Nvidia CEO Jensen Huang has identified robotics as the company's next multitrillion-dollar opportunity after AI. The note also estimated that every $1 spent on Nvidia chips generates an $8$10 multiplier across the broader tech ecosystem. With AI deployments accelerating, Wedbush believes the path to higher market caps is well supported. Investors will watch upcoming earnings and product updates to gauge whether these rivals can meet lofty expectations. This article first appeared on GuruFocus. 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
Business Insider
a day ago
- Business
- Business Insider
The 'TAMPON' trade is a new Big Tech investment idea. How did it perform against ChatGPT's stock-picking abilities?
On Sunday morning, in response to the geopolitical shock of the US bombing Iran, I turned to ChatGPT 's Deep Research tool. I asked it to spend three hours analyzing the situation to come up with five US stock trades that would make money through this Thursday. I did this before Asian markets opened, so the tool had to make predictions about the future with little to no clues from real-time market data. This is a real test of whether AI models and chatbots can generate valuable new insights, or whether they just regurgitate what's already known on the internet. Deep Research produced a well-written report predicting a global "risk-off" reaction that included a drop in US equities, a spike in oil prices, along with a move into safer securities such as US Treasuries, the dollar, and gold. It also gave five specific trades designed to make money from Monday, June 23, through Thursday, June 26: Buy Lockheed Martin (LMT). ChatGPT expected the defense sector to benefit from increased military tensions, leading to higher anticipated defense spending. Buy Exxon Mobil (XOM) or the XLE oil sector ETF. With oil prices likely to spike on concerns about Middle East supply disruptions, ChatGPT advised a long position in energy. Buy gold. Investors typically seek safety in gold during geopolitical crises, so ChatGPT recommended going long on the GLD ETF. Short Delta Air Lines (DAL). Airlines are sensitive to fuel costs and traveler sentiment. ChatGPT flagged Delta as vulnerable due to an expected increase in oil prices and consumer anxiety around flying. Short the S&P 500 via the SPY ETF or futures. As a broader market hedge, it recommended shorting the S&P 500 to profit from the likely risk-off move and overall market decline in the wake of the bombing. Around the same time on Sunday morning, tech analyst Dan Ives emailed investors with his thoughts. He advised clients to buy leading tech and AI stocks. He also inadvertently came up with a new acronym for this suggested group of tech stocks, proposing specifically Tesla, Amazon, Microsoft, Palantir, Oracle, and Nvidia (TAMPON). So, I took Ives's advice as a benchmark on Sunday ahead of the market open. This set the stage for a fascinating AI-versus-human performance showdown. Could ChatGPT's Deep Research recommendations outperform the TAMPON trade? Here are the results, as of the close of trade on Thursday, June 26: Lockheed fell more than 2% in the period. WRONG. Exxon dropped more than 3%. WRONG. The XLE ETF lost over 3%. WRONG. The GLD gold ETF shed about 1%. WRONG. Delta Air Lines rose almost 3%. WRONG. SPY S&P 500 ETF gained more than 2%. WRONG. Ives's TAMPON trade: Tesla climbed about 1%. Amazon gained nearly 4%. Microsoft rallied about 4%. Palantir jumped 5%. Oracle was up about 4%. Nvidia surged nearly 8%. Conclusion: A pretty damning indictment of ChatGPT's predictive abilities.
CNBC
a day ago
- Business
- CNBC
Nvidia heads for 5-day win streak as it hits record highs
Nvidia stock rose for a fifth consecutive day Friday as the chipmaker hovered near fresh highs and investors shook off China concerns. The rise in shares has helped the artificial intelligence chipmaking giant regain its seat as the most valuable company. The stock is up 66% since hitting its 52-week low in early April. Its market capitalization last stood at about $3.8 trillion, putting it ahead of Microsoft and Apple. Wedbush Securities analyst Dan Ives estimated that both Nvidia and Microsoft will hit the $4 trillion market cap club this summer, and reach $5 trillion over the next 18 had a rough start to 2025 as fears of tariffs and China export controls on semiconductors dampened sentiment. Earlier this year, the Trump administration told Nvidia that it would need an export license to ship its H20 processors to China. The chip was introduced following rules introduced by the Biden administration. CEO Jensen Huang raised concerns about getting locked out of the massive $50 billion China market and said the changes effectively cut off sales without a "grace period." He said Nvidia's recent quarterly results would have been better if the company could sell chips in the world's second-largest economy. Nvidia held its annual shareholder meeting on Wednesday, where Huang called robotics the biggest opportunity for the chipmaker after AI. The company's business unit, which includes automotive and robotics segments, reached $567 million in sales, or about 1% of revenues last quarter. "We're working towards a day where there will be billions of robots, hundreds of millions of autonomous vehicles, and hundreds of thousands of robotic factories that can be powered by Nvidia technology," he said.
