2 popular AI shares to sell before they fall 59% and 61%, according to Wall Street -Analists
Palantir and Coreweave have more than doubled this year, but certain analysts expect the Artificial Intelligence (AI) shares to fall sharply in the coming months.
Palantir says it has a unique opportunity to meet the demand for AI because of the software architecture, but it is also the most expensive stock in the S&P 500 with a wide margin.
The debt-intensive business model of CoreWeave makes a profit, but the company runs the leading AI cloud and acts with a reasonable appreciation.
10 shares that we like than Palantir Technologies ›
Palantir Technologies(Nasdaq: PLTR) Shares were won 105% this year, while CoreWeave (Nasdaq: CRWV) Shares are 115%advanced. Nevertheless, the aforementioned Wall Street analysts have ratings on selling shares, and their target prices imply considerable losses for shareholders:
Brent Thill Op Jefferies has set Palantir with a target price of 12 months of $ 60 per share. That means 61% disadvantage of the current share price of $ 155.
Gil Luria At Da Davidson, CoreWeave has set with a target price of 12 months of $ 36 per share. That means 59% disadvantage compared to its current share price of $ 88.
This is what investors need to know about these popular shares for artificial intelligence (AI).
Image source: Getty images.
Palantir develops software for data analyzes. Through the core platforms, users can integrate, organize and visualize complex information to support decision -making about defense, intelligence and business sectors. The company also develops an artificial intelligence platform (AIP) with which developers can integrate large language models into workflows and applications.
Palantir's unique software architecture – The platforms are running around an ontology, a digital representation of the data, processes and assets of an organization – distinguishes it from alternative products. “Our fundamental investments in ontology and infrastructure have positioned the use to satisfy AI demand in a unique way,” says CTO Shyam Sankar.
Palantir reported strong financial results of the second quarter. Customers climbed 43% to 849 and the average expenditure per existing customer rose by 28%. In turn, sales increased by 48% to $ 1 billion, eight straight acceleration and non-Gaap (generally accepted accounting principles) increased income from 77% to $ 0.16 per watered share.
Investors have good reason to think that the company can keep its momentum. Grand View Research expects expenditure for artificial intelligence to increase annually by 36% annually, while expenditure on decision -making information platforms per year will increase by 15% in the same period. The turnover of Palantir could therefore grow faster than 20%until the end of the decade.
However, Palantir has a valuation problem. The price sales ratio of 115 makes it the most expensive shares in the S&P 500(Snpindex: ^GSPC) Through a long shot. No other company in the index trades more than 30 times, which means that Palantir could fall 70% and can still be the most expensive shares. In that context, it is entirely possible that Palantir will suffer a complete collapse at some point in the future.
CoreWeave offers cloud infrastructure and software services that are purposefully built for artificial intelligence workload. In traditional data centers, up to 65% of the calculation capacity in graphic processing units (GPUs) is lost to system intake, but CoreWeave GPU clusters deliver up to 20% better performance than alternative clouds.
The company reported mixed financial results in the second quarter. Turnover increased by 207% to $ 1.2 billion, and the non-Gaap company income rose 135% to $ 200 million. CoreWeave also said that the income arrears rose 86% as a result of extensive deals with an unnamed hyperscale company and OpenAi. However, the net loss of non-Gaap became larger to $ 131 million, much steeper than the loss of $ 5 million that was reported last year.
Interest payment is the main reason for the discrepancy between non-Gaap-business income and non-Gaap-Netto income. Data centers are expensive to work, especially when filled with AI systems. CoreWeave has adopted a large amount of debts to build up his infrastructure and interest costs amounted to $ 267 million in the second quarter.
However, the company lends in a responsible manner. CoreWeave only takes on debts when signed contracts create a need for more infrastructure, and only if the contract covers more than the full costs of the debt. Nevertheless, interest payments are such a substantial headwind that the company will probably not make a profit until 2027, which means that the share will probably be volatile.
CoreWeave is currently being traded against 10 times turnover, a very reasonable appreciation for a company whose turnover is predicted that it will increase by 127% annually until 2026. In that context, I strongly doubt that the share will fall 59%. I even think that investors who are comfortable with volatility must consider buying a few shares.
Before buying stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor Analyst team has just identified what they believe are the 10 best shares For investors to buy now … and Palantir Technologies was not one of them. The 10 shares that made the cut can produce sample returns in the coming years.
Consider when Netflix made this list on December 17, 2004 … If you have invested $ 1,000 at the time of our recommendation, You would have $ 678,148!* Or when Nvidia made this list on April 15, 2005 … If you have invested $ 1,000 at the time of our recommendation, You would have $ 1,052,193!**
Now it is worth mentioning Stock Advisor's The total average return is 1,065%-A market-renewed outperformance compared to 186% for the S&P 500. Do not miss the newest top 10 list, available if you become a member of Inventor.
See the 10 shares »
*Stock Advisor Return on August 25, 2025
Trevor Jennewine has positions in Palantir Technologies. De Motley Fool has positions and recommends Jefferies Financial Group and Palantir Technologies. The Motley Fool has a disclosure policy.
2 popular AI shares to sell before they fall 59% and 61%, according to Wall Street analysts, was originally published by the Motley Fool
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
