Core Insights - The AI sector is experiencing renewed investor interest in 2026, driven by positive remarks from Nvidia's CEO at the CES Conference [1][2] - A significant majority of AI investors, specifically nine out of ten, plan to maintain or increase their holdings in AI stocks this year, with younger investors showing the most confidence [2] Group 1: AI Infrastructure vs. Semiconductors - The AI sector is not uniform; it consists of various categories, including AI infrastructure and semiconductors, which are experiencing different market dynamics [3] - AI infrastructure companies, such as CoreWeave and Nebius, face higher risks due to substantial capital expenditures on data centers before monetization, with Oracle also facing cash flow challenges [4][6] - Semiconductor stocks are currently favored due to established demand for AI chips, which is outpacing supply, and they do not face the same depreciation risks as infrastructure stocks [7][8] Group 2: Emergence of Software Stocks - While chipmakers have been the primary beneficiaries of the AI boom, the need for software to utilize the built infrastructure suggests that software stocks will also gain prominence [9] - Palantir has emerged as a leading AI software company, showing consistent revenue growth and improved operating margins since 2023 [10] - OpenAI and Anthropic are generating significant revenue, with OpenAI projected to exceed a run rate of $20 billion and Anthropic targeting $9 billion, indicating strong market demand for AI software [11] - Smaller software companies like Appian, Amplitude, and Figma are positioned to capitalize on the AI trend, with potential for significant upside if they successfully integrate AI into their offerings [12][13][14]

Despite a year marred by geopolitical tensions, DeepSeek fears, and persistent whispers of a tech bubble, the AI trade defied skeptics to anchor the stock market in 2025.With the Nasdaq-100 finishing up 20.2%, I/O Fund analyst Beth Kindig has released a review of the year’s top 10 tech stocks, offering a blueprint for identifying the next wave of market leaders in 2026.The ‘Real’ AI Trade EmergesThe 2025 market was defined by a decisive rotation toward the “physical” layers of the AI stack. While early boom ...

Key Points The advancement of artificial intelligence has helped the tech sector to outperform the S&P 500. These four stocks are experiencing solid growth and are well positioned to deliver in the new year. 10 stocks we like better than Nvidia › We're in a new year, but some of the investing themes from the past continue to drive the markets. Tech stocks have been a consistent winner in the last three years, outperforming the market by a wide margin. The S&P 500 has gains of 81% in the last thre ...

Key Points Highlighting the power of the AI boom, Nvidia and Palantir both saw their revenue growth rates accelerate in Q3. Palantir's recent acceleration in its revenue growth rate has been particularly remarkable. One of the two stocks' valuations is just simply too difficult to justify. 10 stocks we like better than Nvidia › Both Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) reported staggering Q3 results, featuring the type of growth that keeps the AI (artificial intelligenc ...

Core Insights - Palantir Technologies experienced significant growth in 2025, with shares increasing by 135% due to the rise of generative AI and the company's extensive experience in the field [1][2] Group 1: Company Performance - Palantir has over 20 years of experience developing AI systems for government and law enforcement, which it leveraged to create its artificial intelligence platform (AIP) for business solutions [2] - The introduction of AIP has been a turning point for Palantir, driving accelerating revenue growth and increasing profits throughout 2025 [4] - In Q3 2025, Palantir's revenue reached $1.18 billion, a 63% year-over-year increase and an 18% quarter-over-quarter increase, with earnings per share (EPS) soaring 110% to $0.21 [5] Group 2: Revenue Segmentation - The U.S. commercial segment, which includes AIP, grew 121% year-over-year and 29% sequentially to $397 million, now accounting for 34% of total revenue [5] - Palantir's remaining performance obligation (RPO) stands at $2.6 billion, which is over $1 billion and 60% higher than the previous year [7] Group 3: Financial Metrics - The company's Rule of 40 score is 114%, indicating a strong financial position, as any score above 40% is considered healthy [7] - Palantir's net dollar retention rate is 134%, indicating that existing customers are spending 34% more compared to the same quarter last year [7] Group 4: Valuation Concerns - Palantir's stock is currently trading at a high valuation of 420 times earnings, which poses risks of volatility [8] - Historical context is provided by comparing Palantir's valuation to Amazon's past P/E ratio of over 3,500, suggesting that high multiples can be characteristic of successful companies [8]

Palantir Technologies (NASDAQ: PLTR)traded modestly higher in early U.S. trading on January 6, with shares changing hands at $174.99, up 0.5% on the day, according to Finbold data.Despite recent volatility, Wall Street sentiment turned more constructive after Truist Securities initiated coverage on Palantir with a Buy rating and a $223 price target.Truist forecasts PLTR stock to climb $48 in 2026At the current price, Truist’s target implies an upside of approximately 27%, underscoring confidence that Palant ...

Key Takeaways Two stocks beat NVIDIA in 2025, with D-Wave and Palantir delivering bigger gains than the AI chip leader. QBTS revenues nearly doubled year over year as Advantage2 rolled out, bookings rose, and its base expanded.PLTR revenues jumped on demand for its AI platform across government clients, lifting full-year 2025 sales.Despite U.S.-China trade headwinds, Wall Street’s most sought-after stock, NVIDIA Corporation (NVDA) , reported strong quarterly results throughout 2025, fueled by the artificial ...

Core Viewpoint - The article discusses the potential for growth in three AI-related stocks—NVIDIA Corp., Micron Technology, Inc., and Palantir Technologies Inc.—due to the "January Effect" and ongoing demand in the technology sector driven by artificial intelligence [2][4]. Group 1: NVIDIA Corp. - NVIDIA is expected to experience strong growth driven by demand for its AI hardware, particularly its next-generation Blackwell chips and cloud GPUs [5]. - The easing of U.S.-China trade tensions, highlighted by the approval of H200 AI chip shipments to select customers in China, is seen as a positive development for NVIDIA [6]. - NVIDIA projects fiscal fourth-quarter 2026 revenues at approximately $65 billion, with a margin of plus or minus 2% [7]. - The company's expected earnings growth rate for the current year is 55.9%, with a Zacks Consensus Estimate for EPS at $4.66, reflecting a 12% year-over-year increase [8]. Group 2: Micron Technology, Inc. - Micron's high-bandwidth memory (HBM) chips are in continuous demand, supporting growth in 2025 and expected to continue this year [9]. - The company anticipates fiscal second-quarter 2026 revenues between $18.3 billion and $19.1 billion, mirroring revenue growth seen during the dot-com bubble [10]. - Micron's projected earnings growth rate for the current year is 278.3%, with a Zacks Consensus Estimate for EPS at $31.36, indicating a 185.9% year-over-year increase [11]. Group 3: Palantir Technologies Inc. - Palantir is positioned for growth due to the increasing adoption of its Artificial Intelligence Platform (AIP) among U.S. government and commercial clients [12]. - The company expects total revenues for 2025 to be between $4.396 billion and $4.400 billion, indicating growth in both client segments [13]. - Palantir's expected earnings growth rate for the current year is 42.5%, with a Zacks Consensus Estimate for EPS at $0.73, reflecting a 52.1% year-over-year increase [14].

Core Insights - Palantir and CrowdStrike are identified as two of the most expensive AI stocks, with investor concerns primarily focused on valuation despite a general interest in AI stocks for 2026 [1] Palantir Technologies - Palantir's stock trades at a forward price-to-sales (P/S) ratio of 67 times 2025 analyst estimates and 49 times 2026 consensus, significantly exceeding the median enterprise value-to-sales multiple of around 20 times for software stocks in 2021 and 2022 [2] - The company has experienced accelerating revenue growth, reaching 63% last quarter, driven by increased adoption of its Artificial Intelligence Platform (AIP) among U.S. commercial customers [4] - Palantir's customer count increased by 45% in Q3 2025, and its net dollar retention rate is at 134%, indicating strong growth from existing customers [5] - The U.S. government, as Palantir's largest customer, is also expanding its contracts as it modernizes its defense and intelligence capabilities [6] - Despite its growth potential, the stock is considered overvalued, with historical examples of major tech companies experiencing significant stock price declines before eventual recoveries [7] CrowdStrike - CrowdStrike's stock trades at a forward P/S multiple of nearly 25 times the fiscal 2026 consensus and 20 times fiscal 2027 forecasts, raising concerns about its valuation [10] - The company's annual recurring revenue (ARR) growth had been decelerating but accelerated to 23% last quarter, while total revenue rose 22% [11] - The introduction of the Falcon Flex licensing model has significantly boosted ARR for customers adopting it, with some seeing their ARR triple in Q3 [12] - For CrowdStrike to justify its current valuation, revenue growth needs to accelerate to the 30% range and maintain that level [13]

Core Insights - Artificial intelligence (AI) is recognized as a transformative technology, comparable to the impact of smartphones on society and the economy [1][2] - Companies are rapidly integrating AI into their operations to enhance efficiency and innovate products and services [2] Investment Opportunities - There are various avenues for investing in AI, including enterprise AI, applied AI, and full-stack AI products [3] Enterprise AI: Palantir Technologies - Palantir Technologies has launched its Artificial Intelligence Platform (AIP) integrated with its Foundry and Gotham software, enabling real-time data insights for clients [5] - The company has secured diverse contracts, including partnerships with TWG Global for sports performance and the U.S. Navy for supply chain management [6] - Palantir's stock has increased over 960% since January 1, 2024, indicating strong market performance [7] Applied AI: SoundHound AI - SoundHound AI focuses on voice recognition and conversational AI, with applications in various industries, including fast food and retail [9][10] - The company reported a revenue of $42.05 million in Q3, a 68% increase year-over-year, and has $269 million in cash with no debt [12] - SoundHound's stock has risen 141% in 2025, reflecting its growth potential [12] Big-Swing AI: Tesla - Tesla is heavily investing in AI for its self-driving technology and has launched its Robotaxi app across the U.S. and Canada [13] - The company is also developing Optimus, a humanoid robot, as part of a broader AI strategy [14] - Tesla's stock has increased by 14% in 2025, with potential for significant future gains [15]