Artificial Intelligence (AI) has been the strong winds of the stock market in recent years, but some Wall Street analysts still see a great rise in Palantir Technologies(Nasdaq: PLTR) and Advanced small devices(Nasdaq: AMD)As follows:
Dan Yves VIDBOSA believes that Palinter may be a trillion dollars within two or three years. This means 300 % of its current market value of $ 250 billion.
Hans Mosesmann at Rosenblatt Securities has reduced its target price for 12 months on AMD to $ 225 per share. But this still involves 110 % of its current share price of $ 107.
Here are what investors should know about these artificial intelligence shares.
Palantir specializes in data analysis. Its software products help commercial customers and the government to integrate and develop complex information Automated learning Models, surface visions. Data Corporation recently realized as a leader in the decision intelligence program, Forrester Research The company recently classified as a leader in artificial intelligence (AI) platforms.
Palantir reported exceptional financial results for the fourth quarter, overcoming estimates at the top and lower. The number of its customers jumped by 43 % to 711, and the current average client was spent by 20 %. In turn, revenues increased by 36 % to 828 million dollars, the sixth consecutive race, and the profits of non -accounting accounting generally 75 % to $ 0.14 per diluted stock.
After the report, Mark Giarili in Morningstar Books, “The distinguished Palantir results in the fourth quarter, rapid growth amid artificial intelligence arms race, and strategic sites in the AI-Value series enhance our basic expectations that this company can be Juggernaut the following software.”
Wall Street expects 37 % in the profits to increase in the next four quarters. This consensus makes the current evaluation of 270 times amended profits look expensive. It is recognized that Palantir won the expectations in the last six quarters, and its profits have been estimated at 14 % on average in that period.
However, the arrow will remain expensive even if the profits of the nitheer increase twice as soon as Wall Street expects next year. So, although I think the company will be more appreciated in the future, and perhaps up to $ 1 trillion, I also think the best purchase chances will provide itself. Investors must be cautious in chasing shares at their current price.
Advanced Micro Devices is a semiconductor company known for developing the CPU and EPYC (CPUs) and instinctive graphics units (GPU) for data centers, personal computers and gaming systems. The company is also developing guaranteed processors across a group of final markets, including motor driver assistance systems and industrial machine vision systems.
More importantly, while Intel The pioneer in the market in the X86 CPU for the Sergeons of Data Center and Personal Computers is still measured by the units, and AMD has gained a large share in the market in recent years. These participation gains were driven by a set of AMD innovations and Intel errors. Analysts generally expect more the same in the coming years.
However, AMD mostly did not succeed in her attempts to compete with her Nafidia In database processing units, there are two reasons: First, NVIDIA is constantly achieving the best degrees in MLPERF standards, objective tests that measure the performance of artificial intelligence systems. Second, NVIDIA has a more powerful environmental system than software development tools to help programmers build applications.
AMD reported decent financial results in the fourth quarter, despite the loss of data center sales estimates. The total revenue increased by 24 % to $ 7.7 billion, and uninterrupted accounts of accounting increased in general by 42 % to $ 1.09 per diluted share. In disappointing, CEO Lisa Soo said that the data center sales in the first half of 2025 will be compared to the second half of 2024.
However, sales growth in the data center sector should be enhanced in the second half of 2025 as the production of the latest MI350 instinct. SU also told analysts that Centre Center AI will increase from “more than $ 5 billion of revenues in 2024 to tens of billions of annual revenues in the coming years.”
Wall Street believes that modified AMD profits will grow by 41 % in the next four quarters. This makes the current evaluation of 33 times the modified profits look cheap. These numbers give the AMD ratio of price to growth (PEG) less than 1, which are usually interpreted as shares less than their value. Relatively, Palantir has a multiple connection above 7.
I doubt that AMD shareholders will have a three -month 3 -month revenue, but the arrow appears attractive at its current price. What worries me the only is that Wall Street may exaggerate profit estimation, given that the X86 CPU sales are expected to grow by 17 % in 2025, while personal computer shipments are expected to increase by 5 %. Investors should be comfortable with these dangers to think about buying a few shares, but I will keep the situation small.
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*The stock consultant dates back from February 3, 2025
Trefor Genewin He has positions in NVIDIA and Palantir technologies. Motley Fool has positions in Advanced, Intel, NVIDIA and Palantir technologies. Motley Fool recommends the following options: February 2025 palaces $ 27 calls on Intel. Motley deception has Disclosure.
