AI Stocks at Risk: Analysts Predict Major Price Declines

Recent reports highlight substantial downside predictions for key AI stocks including Nvidia, Upstart Holdings, and Palantir Technologies, suggesting potential concerns for investors in these companies amidst changing market dynamics.

Date: 08-10-2024

AI Rating: 4

The report emphasizes the growing focus on artificial intelligence (AI) within the stock market and identifies three notable stocks, Nvidia, Upstart Holdings, and Palantir Technologies, that could experience significant declines based on recent analyst projections.

Nvidia

Nvidia is highlighted with an implied downside of 28% as per Wall Street analysis, with a target price of $90 from the current price of around $125. The report mentions Nvidia's strong pricing power for its H100 GPU, which is critical for AI solutions. However, the rise of competition and significant insider selling raises alarms about its stock value moving forward.

Upstart Holdings

Upstart is suggested to decline up to 76% in price, with a projected target of $10. Despite its innovative AI-driven loan approval system, the company faces challenges due to deteriorating lending conditions exacerbated by the Federal Reserve's aggressive rate hikes. The report warns that Upstart's untested operating model and its financial losses could also deter investors.

Palantir Technologies

Palantir faces a predicted drop of 78%, with a price target of $9. The company's dependence on government contracts for its Gotham platform limits growth potential, and there are concerns regarding its valuation, which currently stands at 93 times forward earnings. The report suggests that despite some optimism surrounding Palantir, the stock may have peaked.

The overall trends indicated in the report signal possible negative sentiment surrounding these stocks, leading investors to reassess their positions in these volatile AI-driven companies. The gathered insights provide investors with critical information on both the potential and the risks associated with investing in AI stocks as market conditions shift.

Stocks: NASDAQ:NVDA NASDAQ:UPST NYSE:PLTR