Core View - Recent advancements in artificial intelligence (AI) have led to increased interest from businesses, with 287 out of 500 S&P 500 companies mentioning AI in their earnings calls, a significant rise from less than 100 at the end of 2022 [1][2] Group 1: CoreWeave - CoreWeave specializes in renting GPU servers to AI developers and has a significant investment from Nvidia, which owns approximately 7% of the company [4][5] - Nvidia's recent contract to purchase unused capacity from CoreWeave as part of a $6.3 billion GPU deal ensures CoreWeave's growth potential through at least 2032 [5] - CoreWeave has rapidly expanded by taking on debt to build new data centers outfitted with Nvidia chips, benefiting from high demand for AI compute [6] - The company faces significant risks, including a high customer concentration, with Microsoft accounting for 71% of its revenue last quarter, and Microsoft's own capacity expansion could negatively impact CoreWeave's growth [7][8] - HSBC analyst Abhishek Shukla set a price target of $32 for CoreWeave, indicating a potential 75% decline from its current stock price due to high debt and reliance on Microsoft [9] Group 2: Palantir Technologies - Palantir Technologies provides software that helps businesses and government agencies analyze large data sets, with its AI Platform enhancing its product offerings [10] - The company reported a 48% year-over-year sales increase last quarter, with U.S. commercial customer sales up 93% year-over-year, and an adjusted operating margin of 46% [11] - Palantir's remaining deal value among U.S. commercial customers reached $2.79 billion, a 145% increase year-over-year, and it secured a $10 billion contract with the U.S. Army [12] - Despite strong growth, RBC Capital analysts set a price target of $45 for Palantir, suggesting a 75% drop from its current stock price due to unfavorable valuation metrics, trading over 100 times forward sales estimates [13]