From Nasdaq: 2025-02-22 03:30:00

Wall Street analysts have set target prices for Palantir Technologies (NASDAQ: PLTR) and Super Micro Computer (NASDAQ: SMCI) that imply substantial downside in the next year. RBC Capital and Jefferies recommend selling Palantir, with a target price of $40 per share, indicating a 62% downside. Susquehanna and JPMorgan Chase suggest selling Super Micro, with a target price of $15 per share, implying a 74% downside from the current share price of $59.

Palantir Technologies develops data analytics software, operationalizing AI for clients. Forrester Research ranks Palantir as a leader in AI and ML platforms, with impressive financial results in the past year. However, the current valuation of 255 times adjusted earnings looks expensive, despite strong performance.

Super Micro Computer manufactures servers and storage systems, positioning itself as a leader in the AI server market. However, analyst Mehdi Hosseini believes the company lacks a proprietary advantage and may face competition from larger players. Super Micro has been under scrutiny for regulatory issues and delayed financial reporting, leading to uncertainty for investors.

Investors should be cautious about chasing Palantir and Super Micro stocks, given the downside risks indicated by analysts. While Palantir has shown strong financial performance, its high valuation may not be sustainable. Super Micro’s regulatory issues and lack of proprietary advantage pose challenges for future growth. Investors should consider trimming positions in these stocks to mitigate risk.



Read more at Nasdaq: 2 Popular AI Stocks to Sell Before They Drop 62% and 74%, According to Certain Wall Street Analysts