The future of artificial intelligence (AI) is shaping up to be a game-changer for both Wall Street and the global economy. With the ability to learn, adapt, and improve over time, AI has the potential to revolutionize nearly every industry. In fact, analysts at PwC estimate that AI could add a staggering $15.7 trillion to the global economy by 2030.
While the potential benefits of AI are vast, not all AI stocks are created equal. Some leading AI companies could see significant downside according to select Wall Street analysts. Here, we take a closer look at three top-tier AI stocks that analysts believe could plunge by up to 91%.
1. Palantir Technologies: Implied downside of 65%
One Wall Street analyst, Rishi Jaluria of RBC Capital, has set a price target of $9 per share for data-mining specialist Palantir Technologies. If this forecast is accurate, it would represent a 65% drop in the stock’s value. While Palantir does have strong competitive advantages, such as its Gotham and Foundry platforms, concerns about the sustainability of its revenue streams could weigh on the stock.
2. Nvidia: Implied downside of 22%
Semiconductor titan Nvidia has been a major beneficiary of the AI revolution, with its GPUs dominating the market for AI-accelerated data centers. However, an analyst at Deutsche Bank has set a price target of $100 per share for Nvidia, which could result in a 22% decline in the stock’s value. Competitive pressures and declining margins could pose challenges for Nvidia in the future.
3. Tesla: Implied downside of 91%
As the world’s most valuable EV maker, Tesla has incorporated AI into its vehicles through its full self-driving (FSD) software. However, analyst Gordon Johnson of GLJ Research has set a price target of $22.86 per share for Tesla, representing a potential 91% drop in the stock’s value. Concerns about contracting margins, declining EV deliveries, and unfulfilled promises from CEO Elon Musk could weigh on Tesla’s stock.
While these AI stocks have significant potential downside, it’s important to remember that investing always carries risk. Before making any investment decisions, consider seeking advice from a financial professional.
Looking for more investment opportunities? The Motley Fool Stock Advisor service provides investors with expert guidance, regular updates, and stock picks that have outperformed the S&P 500 since 2002. Don’t miss out on the next big investment opportunity – check out the 10 stocks recommended by the Stock Advisor team today!