Latest news with #Jaluria
Hans India
4 days ago
- Business
- Hans India
3 red hot AI stocks that could crash up to 72%: Wall Street analysts
Artificial intelligence (AI) is widely viewed as the next big tech revolution—one that could add up to $15.7 trillion in global economic impact by 2030, according to PwC. While investor enthusiasm is fueling major gains for AI stocks, some Wall Street analysts are issuing sharp warnings: a few of these high-flyers may be heading for a steep fall. Here are three scorching-hot AI stocks that select analysts believe could drop dramatically in the next 12 months: 1. Palantir Technologies (NASDAQ: PLTR) Potential Downside: 72% Palantir's stock has skyrocketed over 2,100% since early 2023, backed by strong demand for its Gotham (government intelligence) and Foundry (enterprise data analytics) platforms. With a market cap of $352 billion, Palantir is seen as a leader in AI-based data operations. But not everyone's buying into the hype. RBC Capital's Rishi Jaluria recently raised his target from $11 to $40, still far below the current price near $149. Jaluria argues Palantir's price-to-sales (P/S) ratio of 114 is unsustainable—even during the dot-com boom, few companies maintained a P/S above 40. He also cites concerns over Palantir's limited scalability and overdependence on U.S. government contracts. 2. Super Micro Computer (NASDAQ: SMCI) Potential Downside: 51% Known for its AI-optimized server hardware, Supermicro has surged more than 1,100% over the past three years. The company benefits from demand for data center infrastructure and strong ties to Nvidia's AI GPUs. However, Goldman Sachs' Michael Ng remains bearish, with a price target of $24—a 51% drop from current levels. Ng believes increased competition in AI servers will erode Supermicro's pricing power and margins over time. Previous investor concerns following allegations of misconduct (since resolved) have also tarnished its premium valuation appeal. 3. SoundHound AI (NASDAQ: SOUN) Potential Downside: 31% SoundHound AI has seen its revenue soar 151% year-over-year, fueled by demand for its voice-recognition and conversational AI technologies across industries like hospitality, automotive, and finance. Still, Northland Securities' Michael Latimore has a hold rating and a price target of $8, suggesting 31% downside. His caution lies in SoundHound's ongoing losses—including a widened adjusted operating loss and heavy cash burn. With profitability unlikely before 2027, and a current valuation at 23x forward sales, even small shifts in AI sentiment could batter the stock. Bubble Risk Ahead? History shows that every transformative technology—from the internet to cryptocurrencies—goes through an early speculative phase. Analysts caution that AI could be entering its own bubble, and valuations may not reflect actual earnings potential. Investors chasing AI gains should look past the hype and carefully assess fundamentals. As select Wall Street voices warn, not all AI stocks are built to last—and some may be poised for a painful correction.
Yahoo
4 days ago
- Business
- Yahoo
3 Scorching-Hot Artificial Intelligence (AI) Stocks That Can Plunge Up to 72%, According to Select Wall Street Analysts
Artificial intelligence (AI) is a potential $15.7 trillion addressable market by the turn of the decade. Though Wall Street analysts are, collectively, optimistic about AI stocks, not all AI stocks are necessarily worth buying. Three red-hot AI stocks aren't as bulletproof as investors think, with select analysts forecasting downside ranging from 31% to 72% over the next year. 10 stocks we like better than Palantir Technologies › In the mid-1990s, the advent and proliferation of the internet revolutionized corporate America by opening new sales channels and creating connections that hadn't previously existed. Since the internet, investors have been patiently waiting for the next-big-thing technology to provide a true leap forward for corporate America. The arrival of artificial intelligence (AI) looks to be the answer. AI provides a way for empowered software and systems to make split-second decisions without the need for human oversight or intervention. In Sizing the Prize, the analysts at PwC pegged this global game-changing opportunity at $15.7 trillion (with a "t") by 2030. While sentiment on Wall Street and among analysts has been mostly bullish -- as you'd expect with a $15.7 trillion addressable market -- not every AI stock is necessarily worth buying. According to select Wall Street analysts, three of the market's scorching-hot AI stocks could plunge by as much as 72% over the next year. Though graphics processing unit (GPU) titan Nvidia is the face of the AI movement, arguably no company has come closer to dethroning it than AI and machine learning-driven data-mining specialist Palantir Technologies (NASDAQ: PLTR). Shares of Palantir have soared more than 2,100% since 2023 began, equating to an increase in market value of around $320 billion. The primary reason investors have gravitated to Palantir is its sustainable moat. Its Gotham platform, which secures multiyear contracts from the U.S. government and its immediate allies to collect/analyze data and assist with military mission planning and execution, is irreplaceable. Meanwhile, its Foundry platform, which is designed to help businesses make sense of their data in order to streamline their operations, has no large-scale one-for-one replacement. However, this sustainable moat isn't enough to impress longtime bear Rishi Jaluria at RBC Capital Markets. Although Jaluria nearly quadrupled his price target on the company from $11 to $40 earlier this year, a $40 bullseye would represent 72% downside from the $142.10 per share Palantir stock closed at on July 11. Jaluria's main issue with Palantir stock is something I've harped on repeatedly in recent weeks: its valuation. Prior to the dot-com bubble, many of Wall Street's cutting-edge companies topped out at price-to-sales (P/S) ratios of 31 to 43. Palantir ended the previous week at a P/S ratio of almost 114! No megacap stock in history, to my knowledge, has been able to sustain a valuation this aggressive -- even those with well-defined competitive advantages. Even the slightest operating slip-up or negative news from the U.S. government could clobber Palantir stock. Jaluria also cautioned that Foundry takes too tailored of an approach with its clients, which will hamper its ability to scale. The same can also be said for Gotham, which is only available to the U.S. and its immediate allies. In other words, Palantir stock is on shakier ground than its skyrocketing share price implies. Another red-hot AI stock that has the potential to be pummeled over the next 12 months is customizable rack server and storage solutions specialist Super Micro Computer (NASDAQ: SMCI). Shares of Supermicro are up 62% year-to-date (through July 11) and more than 1,100% on a trailing-three-year basis. The reason it's been a magnet for AI bulls is its role as a provider of customizable rack servers for AI-accelerated data centers. Businesses are aggressively spending on data center infrastructure to gain a competitive edge, and Supermicro's reliance on Nvidia's highly popular AI-GPUs in its rack servers has allowed its servers to sell like hotcakes. Following sales growth of 110% in fiscal 2024 (its fiscal year ends on June 30), Wall Street is forecasting 48% sales growth for fiscal 2025 and another 34% the following year. None of these figures have been enough to dazzle analyst Michael Ng of Goldman Sachs, who rates Super Micro Computer a sell and expects its shares will fall to $24, equating to 51% downside from where they ended the previous week. Ng's skepticism derives from a belief that the AI server market is becoming highly competitive, which is leading less differentiation and, ultimately, weaker pricing power. Ng anticipates Supermicro's gross profit margin will decline throughout the decade, even as sales potentially climb. Though not specifically mentioned by Ng, Super Micro Computer must also overcome a loss of trust with the investing community following allegations of wrongdoing last summer. While an independent committee absolved insiders of any wrongdoing and didn't result in any changes to the company's reported financial statements, it challenged investors' trust in the management team and squashed any chance of Supermicro commanding much of a valuation premium. Even though Supermicro's stock may appear cheap at just 17 times forward-year earnings, there are reasons investors are leery about giving its shares too much of a premium. Lastly, AI voice recognition and conversational technologies stock SoundHound AI (NASDAQ: SOUN) can plunge over the coming year, based on the prognostication of one Wall Street analyst. Growth has not been an issue for this up-and-coming AI applications company. Sales for the March-ended quarter jumped 151% to $29.1 million from the prior-year period. This speaks to the company's ability to win new clients in the restaurant, automotive, travel and hospitality, and financial service industries, as well as tie these ecosystems together. Despite SoundHound AI decisively pointing its revenue needle in the right direction, Northland Securities analyst Michael Latimore foresees its stock plummeting to $8 over the next 12 months, which works out to a decline of 31%. Whereas the prior two analysts are decisively negative on Palantir and Supermicro, this isn't the case with Latimore and SoundHound AI. Latimore has a hold rating on the company and is excited about the agentic AI opportunities that lie ahead. The reason price targets should be kept in check is that SoundHound AI has a long way to go before it demonstrates to Wall Street that its operating model can generate profits. Excluding adjustments to contingent acquisition liabilities during the March-ended quarter, its adjusted loss actually widened from $20.2 million to $22.3 million, in spite of 151% growth in net sales from the prior-year quarter. SoundHound AI also burned through close to $19.1 million in cash from its operating activities. The company isn't expected to push into the recurring profit column until 2027, at the earliest. SoundHound AI would also be heavily exposed if an AI bubble formed and burst. Every next-big-thing technology for more than three decades has navigated its way through an early stage bubble, and nothing suggests artificial intelligence is going to be the exception to this unwritten rule. If demand for AI applications even remotely slows, SoundHound AI stock, which is valued at 23 times forward-year sales estimates, will feel the pain. 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 $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% 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 July 14, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy. 3 Scorching-Hot Artificial Intelligence (AI) Stocks That Can Plunge Up to 72%, According to Select Wall Street Analysts was originally published by The Motley Fool 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
27-05-2025
- Business
- Business Insider
Here's Why Analysts Remain Sidelined on Palantir Stock (PLTR) Despite AI Tailwinds
Palantir Technologies (PLTR) stock has rallied 63% so far in 2025, thanks to the company's impressive growth, supported by the demand for the data analytics company's AIP (Artificial Intelligence Platform) offering. Earlier this month, Palantir reported robust top-line growth and raised its full-year revenue guidance, backed by AI tailwinds across its Commercial and Government businesses. However, several analysts remain sidelined on PLTR stock and see downside risk amid macro uncertainties and concerns over the stock's lofty valuation. Confident Investing Starts Here: Analysts Are Cautious Despite Strong Financials Palantir has been seeing robust momentum in its business. It closed 139 deals of at least $1 million in value, 51 deals of at least $5 million, and 31 deals of at least $10 million. The company generated adjusted free cash flow of $370.4 million in Q1 2025, reflecting an impressive 149% year-over-year growth. Moreover, Palantir raised its full-year adjusted free cash flow outlook and now expects it in the range of $1.6 to $1.8 billion. Despite such solid financials, several analysts are cautious or bearish on PLTR stock. For instance, following the results, RBC Capital analyst Rishi Jaluria reiterated a Sell rating on PLTR stock with a price target of $40. Jaluria acknowledged that the company delivered a 'solid' quarter, but noted that the Commercial business missed estimates. While the Government business fared better than expectations, the analyst remains concerned about the 'runway for growth and product differentiation.' He continues to believe that PLTR stock's risk-reward is skewing unfavorable, with the stock trading at a premium multiple. Further, Citi analyst Tyler Radke raised his price target to $115 from $110 following the Q1 results, but maintained a Hold rating. Radke thinks that the fluctuations in expenses and taxes across quarters make steady execution critical for Palantir. Moreover, the 4-star analyst contends that flawless execution becomes even more important to justify the stock's steep valuation at 55 times the estimated 2026 sales. While several analysts have recently flagged concerns about the company's valuation, PLTR Bulls continue to believe in its growth potential. Last week, Wedbush analyst Daniel Ives reaffirmed a Buy rating on PLTR stock with a price target of $140, after the company received a $795 million contract extension from the U.S. Army for its Maven Smart System software. This was on top of the $480 million contract secured in May 2024, with the total deal value now crossing $1.3 billion and marking Palantir's first-ever billion-dollar deal. The 4-star analyst thinks that this deal reflects the company's growing importance in the U.S. government, especially in defense, where its AI software enables data fusion and target identification. Is PLTR a Good Stock to Buy? Overall, Wall Street has a Hold consensus rating on Palantir stock based on 11 Holds, four Sells, and three Buy recommendations. The average PLTR stock price target of $100.13 implies about 19% downside risk from current levels.
Business Insider
22-05-2025
- Business
- Business Insider
New Buy Rating for Workday (WDAY), the Technology Giant
RBC Capital analyst Rishi Jaluria maintained a Buy rating on Workday (WDAY – Research Report) on May 20 and set a price target of $340.00. The company's shares closed yesterday at $268.54. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter According to TipRanks, Jaluria is an analyst with an average return of -9.6% and a 49.09% success rate. Jaluria covers the Technology sector, focusing on stocks such as Box, MongoDB, and DocuSign. Currently, the analyst consensus on Workday is a Moderate Buy with an average price target of $303.00, a 12.83% upside from current levels. In a report released yesterday, Needham also maintained a Buy rating on the stock with a $300.00 price target. Based on Workday's latest earnings release for the quarter ending January 31, the company reported a quarterly revenue of $2.21 billion and a net profit of $94 million. In comparison, last year the company earned a revenue of $1.91 billion and had a net profit of $1.19 billion
Business Insider
22-05-2025
- Business
- Business Insider
RBC Capital Keeps Their Sell Rating on Box (BOX)
In a report released on May 20, Rishi Jaluria from RBC Capital maintained a Sell rating on Box (BOX – Research Report), with a price target of $21.00. The company's shares closed yesterday at $31.55. Confident Investing Starts Here: Jaluria covers the Technology sector, focusing on stocks such as Box, MongoDB, and DocuSign. According to TipRanks, Jaluria has an average return of -9.6% and a 49.09% success rate on recommended stocks. Currently, the analyst consensus on Box is a Moderate Buy with an average price target of $35.29. The company has a one-year high of $35.74 and a one-year low of $24.63. Currently, Box has an average volume of 1.74M. Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BOX in relation to earlier this year. Last month, Eli Berkovitch, the VP Chief Acct Ofr & Controller of BOX sold 2,750.00 shares for a total of $81,345.00.
