Latest news with #RishiJaluria
Yahoo
an hour ago
- Business
- Yahoo
Microsoft (MSFT) Gets $525 Price Target as AI and Cloud Demand Remain Strong
Microsoft Corporation (NASDAQ:) is one of the . On July 21, RBC Capital analyst Rishi Jaluria reiterated an 'Outperform' rating on the stock with a $525.00 price target. The firm's channel checks reveal 'healthy cloud' conditions and 'phased Copilot rollouts' across Microsoft's enterprise customer base. The channel checks included system integrators, cloud consulting firms, and also large enterprise-focused resellers with visibility into Azure deployments and AI adoption efforts, all of which described the overall tone as 'constructive.' Moreover, Azure's core workloads are staying steady while AI-related interest continues to build. In particular, Microsoft Copilot is being mentioned more frequently in expansion and renewal conversations regardless of customers remaining in pilot or department-level usage phases. 2nix Studio / The firm has also highlighted how commercial structures are evolving, with partners signing shorter contracts and even mid-contract adjustments tied to AI rollout timing. However, issues regarding internal readiness are limiting broader adoption. Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. While we acknowledge the potential of MSFT 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. READ NEXT: and Disclosure: None.
Yahoo
an hour ago
- Business
- Yahoo
Microsoft (MSFT) Gets $525 Price Target as AI and Cloud Demand Remain Strong
Microsoft Corporation (NASDAQ:) is one of the . On July 21, RBC Capital analyst Rishi Jaluria reiterated an 'Outperform' rating on the stock with a $525.00 price target. The firm's channel checks reveal 'healthy cloud' conditions and 'phased Copilot rollouts' across Microsoft's enterprise customer base. The channel checks included system integrators, cloud consulting firms, and also large enterprise-focused resellers with visibility into Azure deployments and AI adoption efforts, all of which described the overall tone as 'constructive.' Moreover, Azure's core workloads are staying steady while AI-related interest continues to build. In particular, Microsoft Copilot is being mentioned more frequently in expansion and renewal conversations regardless of customers remaining in pilot or department-level usage phases. 2nix Studio / The firm has also highlighted how commercial structures are evolving, with partners signing shorter contracts and even mid-contract adjustments tied to AI rollout timing. However, issues regarding internal readiness are limiting broader adoption. Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. While we acknowledge the potential of MSFT 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. READ NEXT: and Disclosure: None.
Hans India
15-07-2025
- 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
15-07-2025
- 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
25-06-2025
- Business
- Business Insider
RBC Capital Reaffirms Their Buy Rating on Pegasystems (PEGA)
In a report released on June 23, Rishi Jaluria from RBC Capital maintained a Buy rating on Pegasystems (PEGA – Research Report), with a price target of $60.00. The company's shares closed yesterday at $51.61. 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 Jaluria covers the Technology sector, focusing on stocks such as Salesforce, Microsoft, and Pegasystems. According to TipRanks, Jaluria has an average return of -9.4% and a 46.15% success rate on recommended stocks. In addition to RBC Capital, Pegasystems also received a Buy from Rosenblatt Securities's Blair Abernethy in a report issued on June 23. However, on June 20, D.A. Davidson maintained a Hold rating on Pegasystems (NASDAQ: PEGA). PEGA market cap is currently $4.25B and has a P/E ratio of 48.24. Based on the recent corporate insider activity of 150 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 PEGA in relation to earlier this year. Earlier this month, John Gerard Higgins, the Chief, Client &Partner Success of PEGA sold 11,830.00 shares for a total of $1,209,380.90.
