From Nasdaq: 2025-05-15 03:51:00

Investors are increasingly turning to artificial intelligence (AI) stocks for potential growth opportunities. These stocks are equipped with the capability to reason and make decisions independently. Analysts predict that the global AI market could reach $15.7 trillion by 2030, attracting significant attention from investors. However, not all AI stocks are considered a wise investment, as some may experience significant declines in value.

One AI stock facing potential downside is Tesla, with an implied 92% decrease according to analyst Gordon Johnson. Concerns include rising competition, declining deliveries, and unsustainable profit sources. Tesla’s CEO, Elon Musk, also poses challenges with unfulfilled promises and overvalued shares. The company’s questionable earnings quality and high valuation raise further red flags.

Palantir Technologies is another AI stock at risk, with an implied 66% downside predicted by RBC Capital Markets. The company’s unjustifiable valuation premium and limited client pool are highlighted as areas of concern. While Palantir offers unique AI-driven services, its stock’s high price-to-sales ratio and narrow long-term potential could lead to a significant drop in value.

Upstart Holdings, an AI-powered lending platform, faces an implied 65% downside, according to analyst Michael Ng. While the company offers innovative lending solutions, its untested operating model during economic downturns and sensitivity to monetary policy shifts pose risks. Upstart’s unproven resilience in a recessionary environment and changing interest rate landscape raise doubts about its future performance.

Investors seeking new opportunities may want to consider “Double Down” stock recommendations from expert analysts. These alerts identify companies poised for growth, with historical returns showing substantial gains for early investors. Past recommendations for companies like Nvidia, Apple, and Netflix have yielded significant returns. Joining Stock Advisor provides access to current “Double Down” alerts, offering a potentially lucrative investment opportunity.



Read more at Nasdaq: 3 High-Flying Artificial Intelligence (AI) Stocks That Can Plunge Up to 92%, According to Select Wall Street Analysts