Israel Englander, a highly successful hedge fund manager, sold Palantir and bought Tesla in the third quarter.Billionaire Israel Englander is the founder and CEO of Millennium Management, a hedge fund that beat the S&P 500 (^GSPC +0.01%) by about 39 percentage points over the past three years. In fact, Millennium is the third most successful hedge fund in history as measured by net gains, according to LCH Investments.That makes Englander and his team a good source of inspiration for individual investors, an ...

Core Insights - Palantir Technologies and Intel have shown significant returns in 2025, with Palantir shares increasing by 145% and Intel shares by 88%, but analysts predict substantial declines in 2026 [1] Palantir Technologies - Palantir specializes in analytics and AI software, recognized as a leader in AI platforms and decision intelligence software by Forrester Research and IDC [3] - RBC Capital has set a target price of $50 per share for Palantir, indicating a 72% downside from the current price of $180.84, while Jefferies has a target of $70 per share, implying a 61% downside [4] - Palantir's revenue growth has accelerated for nine consecutive quarters, with a gross margin of 80.81% [5] - The company currently trades at 115 times sales, significantly higher than the next closest S&P 500 stock at 44 times sales, suggesting that the premium is unsustainable [6] Intel - Intel is the largest supplier of CPUs but has fallen behind competitors like TSMC due to manufacturing delays and missteps [7] - The company has lost over 35% market share in both personal computers and data center servers over the past decade [8] - Morgan Stanley has set a bear-case target price of $19 per share for Intel, indicating a 50% downside from its current price of $37.30, while Wedbush has a target of $20 per share, implying a 47% downside [4] - Intel's foundry business has struggled to attract major customers, and sales have dropped 23% over the last three years despite rising demand for AI processors [11] - The stock trades at 2.7 times sales, above its three-year average of 2.2 times, but underlying issues remain unaddressed [12]

Group 1 - Palantir Technologies has been one of the top five stocks in the S&P 500 for two consecutive years, with shares increasing 135% in 2025 after a 373% rise in 2024 [1][2] - The company is recognized as a leader in decision intelligence and AI/ML software, providing analytics and AI solutions for both commercial and government sectors [4][5] - Palantir's sales growth has accelerated for eight consecutive quarters, with revenue jumping 48% to $1 billion and non-GAAP earnings rising 77% to $0.16 per diluted share [6][7] Group 2 - The International Data Corporation (IDC) ranked Palantir as the market leader in decision intelligence software, and the data analytics software market is projected to grow at 28% annually through 2030 [5] - Palantir currently trades at 131 times sales, making it the most expensive stock in the S&P 500, significantly higher than its closest competitor, AppLovin, at 41 times sales [9][10] - Historical data shows that only three other software stocks have achieved a price-to-sales ratio higher than 120, all of which eventually experienced significant declines [10][12]