Latest news with #JamesFoord
Business Insider
3 days ago
- Business
- Business Insider
‘A Make or Break Moment,' Says Top Investor About Palantir Stock
Palantir (NASDAQ:PLTR) stock continues to spark debate among investors. While the company is delivering impressive results, driven by a rapidly expanding client base across both public and private sectors, its soaring valuation has raised eyebrows. PLTR now trades at multiples more than 10–20× above typical software peers, prompting questions about how much higher it can realistically go. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. That kind of meteoric rise places investors in a tricky predicament – one can admire the company's trajectory yet hesitate to buy in at such elevated levels. Top investor James Foord articulates this tension well, noting that while Palantir's story remains compelling, the narrative could shift dramatically if upcoming earnings fail to meet the market's lofty expectations. 'Stories and sentiment can change, and the next earnings could be the catalyst for this,' explains the 5-star investor, who ranks among the top 2% of TipRanks' stock pros. Yet, for now, the prevailing sentiment remains optimistic. Foord doesn't necessarily foresee an imminent drop. Instead, he emphasizes the market's broader enthusiasm around Palantir and argues that the company could eventually be crowned a member of the 'Magnificent 7' tech elite. Foord attributes much of Palantir's rise to a potent combination of factors: 'larger-than-life' leadership, a promising tech stack, and the broader AI boom that has fueled investor excitement across the sector. As Morgan Housel famously put it, 'the best story wins,' and Palantir is a textbook case. Its secretive government contracts, ambitious AI platform (AIP), and aura of mystery give the stock an almost mythic appeal. But that same opacity is a double-edged sword. If AIP's value is overestimated or rivals catch up, the story could unravel quickly, especially as operating margins, currently around 44%, may already be peaking. Even a modest slip in profitability could shake investor confidence. Is now a good time to invest in Palantir stock? Foord believes the upside outweighs the risk, despite acknowledging the high-stakes nature of the bet. 'The big upside potential is taking center stage, but there's also a big downfall potential for Palantir if the AI darling falls out of favor,' he concludes, while maintaining his Buy rating on the stock. (To watch Foord's track record, click here) Meanwhile, Wall Street is taking a more cautious stance. With 10 Hold ratings, 3 Buys, and 3 Sells, analysts give PLTR a consensus Hold (i.e. Neutral) rating. Moreover, the average 12-month price target of $104.85 suggests a potential downside of ~32% from current levels. (See ) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Business Insider
26-06-2025
- Business
- Business Insider
‘Don't Be a Fool,' Says Top Investor About Nvidia Stock
Nvidia (NASDAQ:NVDA) holds a stunning advantage in the AI race, riding its world-beating GPU chips to unbelievable heights. The company controls some 90% of the lucrative data center market, and its newest Blackwell chips are selling like hotcakes. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter For such a large company, its revenues are still growing strong – 69% last quarter – and despite a one-time $4.5 billion hit due to China restrictions, margins were still above 60%. That resilience has helped turn the tide. While trade tensions and fears of slowing capex spending among the hyperscalers placed some pressure on the company's share price earlier this year, those concerns now appear to be fading fast. NVDA stock is up over 60% since its post-Liberation Day dip in early April – and just today, it notched a new all-time high. Even so, Nvidia isn't out of the woods. Its dominance has made it a target, and rivals are scrambling to catch up. Whether through competing GPUs or emerging photonic and analog in-memory solutions, challengers are actively trying to erode Nvidia's edge. The question looming over the stock is this: Could these alternatives finally knock the giant off its perch? Not likely, says top investor James Foord, who is among the top 2% of TipRanks' stock pros. He believes that Nvidia has a 'secret weapon' up its sleeve – one that will help the company maintain its lead in the AI hardware race for years to come. 'Nvidia Corporation's dominance stems from its integrated AI stack and robust software ecosystem, not just its GPUs,' reminds Foord. In particular, the company's decision to open its CUDA software and NVLink Fusion interconnect to third parties – including Qualcomm and Marvell – could be transformative. This strategic shift, according to Foord, enables Nvidia to become the backbone of the broader AI ecosystem, embedding itself deeply across multiple platforms. The investor likens this to Microsoft's playbook with Windows. Just as becoming the default operating system cemented Microsoft's place atop the computing world, Nvidia could be positioning itself as the de facto OS for AI. 'Creating the dominant OS for computers secured revenues for the company for decades to come, even without the need to succeed in the hardware market,' adds Foord. While the investor concedes that Nvidia's hardware edge may be narrowing, he argues, 'it would be even more foolish not to acknowledge Nvidia still has a stronghold on the market.' As the hardware race heats up, Foord thinks investors might be missing what could be the real prize: AI software. That's where he sees the next big wave of growth and profit – and why he remains firmly bullish on NVDA stock, giving it a Strong Buy rating. (To watch Foord's track record, click here) That's the overall spirit on Wall Street as well. With 35 Buy, 4 Hold, and 1 Sell ratings, NVDA has a Strong Buy consensus rating. Its 12-month average price target of $175.28 has an upside of ~14%. (See NVDA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
