Last Year, Wall Street Said This AI Stock Was Overvalued. Now, Wall Street Expects It to Deliver Double-Digit Gains.
This stock has soared more than 800% in recent years.
Last Year, Wall Street Said This AI Stock Was Overvalued. Now, Wall Street Expects It to Deliver Double-Digit Gains.
Overview
In recent years, several artificial intelligence (AI) stocks have delivered major gains and led the S&P 500 bull market higher. One of the most recognizable has been Nvidia, the world's No. 1 AI chip designer. But another company, for most of its history associated with government contracts, jumped into the limelight amid the AI boom. This player saw its government business continue to grow -- but it also developed a huge commercial business, resulting in major earnings gains.
And the stock took off, soaring more than 800% over the past three years. I'm talking about Palantir Technologies (NASDAQ: PLTR). Now, the only problem with this is that Palantir's valuation also climbed, and at its peak reached beyond 275x forward earnings estimates. Though future prospects looked bright, many analysts last year said Palantir was overvalued at these levels and potentially heading for declines.
Details
Today, however, Wall Street is calling for a gain of 30% for Palantir stock over the coming 12 months. Is this former highflier heading for a new era of gains? Let's find out.
Source
Originally published at www.fool.com.
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