Are Palantir Technologies and Super Micro Computer about to plunge? According to certain Wall Street analysts, the answer is yes. Shares of Palantir Technologies (NYSE: PLTR) and Super Micro Computer (NASDAQ: SMCI) have seen significant gains over the past year due to the increased interest in artificial intelligence (AI). However, analysts are predicting a sharp decline in the next 12 months.
Rishi Jaluria at RBC Capital Markets reaffirmed a price target of $9 per share for Palantir, suggesting a 79% downside from the current share price of $43. On the other hand, Aaron Rakers at Wells Fargo lowered his price target on Super Micro Computer to $37.50 per share, implying a 20% downside from the current share price of $47.
But before making any decisions based solely on these forecasts, investors should dig deeper into the details to make an informed choice about these two companies.
Palantir Technologies specializes in helping businesses manage complex data through its Gotham and Foundry platforms, utilizing AI to provide insights for decision-making. The recent debut of the Artificial Intelligence Platform (AIP) has garnered recognition from analysts like Forrester Research. However, not all analysts are impressed, as Gartner did not mention Palantir in its latest report on data science and machine learning platforms.
On the other hand, Super Micro Computer focuses on building servers and data center infrastructure solutions, positioning itself as a leader in AI servers. Despite strong revenue growth, the company faces regulatory uncertainty due to allegations of accounting manipulation and investigation by the Justice Department.
While Wall Street expects both companies’ earnings to increase, the sky-high valuation of Palantir and regulatory uncertainty surrounding Super Micro Computer pose significant risks. Investors should carefully weigh these factors before making any decisions.
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