The Motley Fool·2025-08-06 07:51Core Insights - The rise of artificial intelligence (AI) is seen as the next significant technological leap, comparable to the internet revolution, with a projected global addressable market of $15.7 trillion by 2030 [2][4]. Group 1: Nvidia - Nvidia is highly favored by Wall Street, with 59 out of 66 analysts rating it a buy, but there is a dissenting opinion predicting a 42% downside to a price target of $100 [6][7]. - Concerns about Nvidia include internal competition from its top customers developing their own AI chips, which could reduce Nvidia's pricing power and gross margins [9]. - The CEO aims to release a new advanced AI chip annually, but rapid depreciation of older models could disrupt upgrade cycles and customer relationships [10][12]. Group 2: Palantir Technologies - Palantir is projected to face a 74% downside, with a price target of $40, following a significant stock rally of over 2,300% in 2023 due to its shift to recurring profitability [15][16]. - Concerns about Palantir's Foundry platform include skepticism regarding its sales momentum and the sustainability of its rising margins, which may be driven by one-off deals [17]. - Palantir's valuation is a major issue, with a price-to-sales (P/S) ratio of 123, far exceeding historical norms, indicating potential overvaluation [18].