Palantir is pushing boundaries in more ways than one.Putting aside the exceptional volatility we've witnessed on Wall Street since the beginning of April, the can't-miss trend over the last two and a half years has unquestionably been the evolution of artificial intelligence (AI).In its simplest form, AI empowers software and systems with the ability to reason and act on their own. This capacity to make split-second decisions without human oversight, as well as evolve to (potentially) learn new skills or jo ...

Core Viewpoint - The article discusses two Dow stocks, Visa and UnitedHealth Group, as strong investment opportunities during the earnings season, while highlighting Nvidia as a stock to avoid due to various challenges ahead. Group 1: Visa - Visa is identified as a top investment choice with significant upside potential over the next five years [5] - Despite concerns about a potential U.S. economic recession, Visa's business model allows it to recover quickly from economic downturns, as recessions historically last around 10 months while expansions last about five years [6][7] - Visa reported a 13% growth in cross-border payment volume in its fiscal second quarter, indicating strong performance and growth potential in emerging markets [8] - The company avoids lending, which allows it to sidestep capital requirements for potential loan losses, enabling faster recovery from economic turbulence compared to other financial institutions [9] - Visa's forward price-to-earnings (P/E) ratio is approximately 27, which is 6% below its average over the past five years, suggesting it is currently undervalued [10] Group 2: UnitedHealth Group - UnitedHealth Group is another strong investment option, despite a recent 22% drop in stock price due to lowered profit guidance related to Medicare Advantage costs [12][13] - The health insurance sector is characterized by consistent profits and moderate growth, with insurers having significant premium pricing power to offset unexpected costs [14] - UnitedHealth's business model is predictable, with stable demand for medical services regardless of economic conditions, allowing for accurate expense forecasting [15] - The Optum subsidiary is a key asset, providing higher operating margins and faster sales growth compared to the insurance segment, contributing to the company's overall strength [16] - UnitedHealth's forward P/E ratio has dropped to 13, the lowest in at least five years, representing a 34% discount to its average over the past five years [16] Group 3: Nvidia - Nvidia is highlighted as a stock to avoid due to challenges including export restrictions on AI chips to China, which could significantly impact sales [19] - Increased competition from both direct competitors and internal customers developing their own GPUs poses a threat to Nvidia's market position [20] - The company's gross margin has been declining, indicating waning pricing power and potential issues with customer retention due to rapid upgrade cycles [20][21] - The article warns of a potential bubble in AI stocks, suggesting that Nvidia could be particularly vulnerable if such a bubble bursts [22]