Recent analysis paints a mixed picture for AI stocks. While the AI market is projected to reach $15.7 trillion by 2030, analysts caution that not all AI stocks are safe bets. Specifically, Palantir Technologies, Super Micro Computer, and SoundHound AI could see significant drops in value, potentially falling by 72%, 51%, and 31% respectively, due to concerns about high valuation, increasing competition, and future performance. However, smaller companies like CoreWeave, Astera Labs, and Penguin Solutions are emerging as key players, offering cloud-based AI platforms, data center hardware, and AI infrastructure solutions. CoreWeave, for example, attracts major clients like OpenAI, Microsoft, and Meta Platforms. Nvidia's stock is also experiencing a boost as the U.S. eases restrictions on AI chip sales to China, potentially unlocking $10 billion in revenue. This decision benefits Nvidia and its partners like Samsung. The resurgence of AI is also driving a surge in U.S. startup funding, which increased by 75.6% in the first half of 2025, with major deals including OpenAI's $40 billion round and Meta's investment in Scale AI. Trading Technologies is investing in SIGMA AI to enhance AI integration into its platform. Cathie Wood of Ark Investment Management sees a $13 trillion opportunity in AI software by 2030, highlighting Confluent and Datadog as potential beneficiaries. Overall, the AI trade is making a comeback, with stocks like Reddit and DR Horton gaining attention alongside Nvidia.
Key Takeaways
- Analysts predict potential drops for Palantir (72%), Super Micro (51%), and SoundHound AI (31%) due to valuation and competition concerns.
- CoreWeave, Astera Labs, and Penguin Solutions are highlighted as overlooked AI stocks with growth potential.
- Nvidia's stock is rising as the U.S. eases AI chip sales restrictions to China, potentially unlocking $10 billion in revenue.
- U.S. startup funding surged by 75.6% in the first half of 2025, driven by AI investments, including OpenAI's $40 billion round.
- Trading Technologies is investing in SIGMA AI to enhance AI integration into its platform.
- Cathie Wood forecasts a $13 trillion AI software opportunity by 2030, favoring Confluent and Datadog.
- Nvidia's H20 AI chip outperforms competitors like Huawei's Ascend 910 in AI processing.
- CoreWeave offers cloud-based AI platforms with advanced processors like Nvidia's GB200 Blackwell Superchip.
- Astera Labs provides hardware that improves data center connectivity, increasing computing power while reducing energy use.
- AI skeptics are retreating as strong demand and spending in the AI industry are being realized.
Analysts warn AI stocks Palantir, Super Micro, SoundHound could drop big
Wall Street analysts predict that some popular AI stocks might drop significantly in value. Palantir Technologies could fall by 72%, Super Micro Computer by 51%, and SoundHound AI by 31%. Palantir's high valuation and tailored approach, Super Micro's competition, and SoundHound AI's future prospects are concerns. Despite the potential $15.7 trillion AI market by 2030, not all AI stocks are considered safe investments.
AI stocks Palantir, Super Micro, SoundHound face potential drops, analysts say
Analysts believe that AI stocks like Palantir Technologies, Super Micro Computer, and SoundHound AI could decrease in value. Palantir's stock might drop 72% due to its high valuation. Super Micro Computer could fall 51% because of increasing competition in the AI server market. SoundHound AI may decline 31% based on one analyst's prediction. These concerns highlight that not all AI stocks are guaranteed to be good investments, even with the potential of the AI market reaching $15.7 trillion by 2030.
Analysts warn AI stocks Palantir, Super Micro, SoundHound could drop big
Wall Street analysts are suggesting that some popular AI stocks may not be as safe as investors believe. Palantir Technologies could see a 72% drop, Super Micro Computer might fall by 51%, and SoundHound AI could decrease by 31%. Concerns include Palantir's high valuation, Super Micro's increasing competition, and SoundHound AI's future performance. Despite the potential $15.7 trillion AI market by 2030, analysts caution against assuming all AI stocks are worth buying.
CoreWeave, Astera Labs, Penguin Solutions: Overlooked AI stocks with growth potential
While Nvidia and Palantir dominate the AI market, smaller companies are finding ways to profit from AI growth. CoreWeave offers cloud-based AI platforms with advanced processors like Nvidia's GB200 Blackwell Superchip. Astera Labs provides hardware that improves data center connectivity, increasing computing power while reducing energy use. Penguin Solutions offers AI data center infrastructure solutions. Analysts expect these companies to grow as they capitalize on the expanding AI industry.
CoreWeave, Astera Labs, Penguin Solutions: Undervalued AI stocks to watch
Nvidia and Palantir are well-known in AI, but smaller companies are also poised for growth. CoreWeave offers cloud-based AI platforms with powerful processors, attracting major clients like OpenAI, Microsoft, and Meta Platforms. Astera Labs provides hardware for data centers, improving data transmission and reducing power consumption. Penguin Solutions focuses on AI data center infrastructure. These companies are expected to grow as they address specific needs within the AI industry.
Nvidia stock jumps as US eases AI chip sales to China
Nvidia's stock increased after the U.S. eased restrictions on selling its H20 AI chips to China. This reverses a previous ban that cost Nvidia $4.5 billion. Analysts predict a sales rebound and a potential $200 stock price by year-end. Nvidia is also expanding its supply chain through partnerships in Vietnam and Mexico. Despite potential risks like inflation and competition, experts recommend buying Nvidia stock with caution.
Nvidia's AI chip sales to China could unlock $10B in revenue
The U.S. government has lifted export restrictions on Nvidia's H20 AI chips, potentially unlocking $10 billion in revenue. This decision benefits Nvidia and partners like Samsung, which provides GDDR7 memory chips for the H20. Nvidia's H20 chip outperforms competitors like Huawei's Ascend 910 in AI processing. Analysts recommend buying Nvidia and Samsung stock, anticipating growth from AI infrastructure demand and memory chip recovery.
AI boom drives US startup funding surge despite VC struggles
U.S. startup funding increased by 75.6% in the first half of 2025, driven by investments in AI. Funding reached $162.8 billion, the highest since 2021. Major AI deals include OpenAI's $40 billion round and Meta's investment in Scale AI. Venture capital fundraising, however, faces challenges, with a 33.7% year-over-year decline. IPOs and M&A activity are showing signs of recovery, boosting confidence in the market.
Trading Technologies invests in SIGMA AI to boost AI integration
Trading Technologies (TT) has invested in SIGMA AI to improve AI integration into its platform. SIGMA AI will provide a proprietary AI and innovation hub for TT. Andy Simpson, SIGMA AI's founder, will also become head of AI and innovation at TT. The partnership aims to deliver AI-driven solutions that are faster, smarter, and more secure for TT's clients.
Nvidia's return to China boosts market with AI chip sales resuming
Nvidia's stock is expected to rise as it resumes sales of its H20 AI chip to China. The U.S. government has approved licenses for H20 exports, reversing previous restrictions. Analysts believe this move will benefit Nvidia and the Nasdaq. Nvidia CEO Jensen Huang is expected to reinforce the company's commitment to the Chinese market. The decision signals a shift in U.S. trade policy, recognizing the importance of global scale for tech leadership.
Cathie Wood sees $13T AI software opportunity, likes Confluent and Datadog
Cathie Wood of Ark Investment Management believes AI could create a $13 trillion opportunity in the software industry by 2030. She predicts AI will lower software development costs, leading to increased demand. Confluent and Datadog are two companies that could benefit from this trend. Confluent's data streaming platform and Datadog's AI development tools are critical for AI applications.
AI stocks Reddit, DR Horton buzzing as AI trade makes comeback
AI skeptics are retreating as evidence shows strong demand and spending in the AI industry. Nvidia's announcement to resume selling AI chips in China is a positive sign. Reddit is benefiting from the changing internet with its human-driven data. DR Horton is attractive due to potential interest rate cuts. These stocks are gaining attention as the AI trade makes a comeback.
Sources
- 3 Scorching-Hot Artificial Intelligence (AI) Stocks That Can Plunge Up to 72%, According to Select Wall Street Analysts
- 3 Scorching-Hot Artificial Intelligence (AI) Stocks That Can Plunge Up to 72%, According to Select Wall Street Analysts @themotleyfool #stocks $PLTR $SMCI $SOUN
- 3 Scorching-Hot Artificial Intelligence (AI) Stocks That Can Plunge Up to 72%, According to Select Wall Street Analysts
- Undervalued and Ignored: 3 Artificial Intelligence (AI) Stocks With Room to Run @themotleyfool #stocks $CRWV $NVDA $PENG $ALAB
- Undervalued and Ignored: 3 Artificial Intelligence (AI) Stocks With Room to Run
- Nvidia's Strategic Edge: Navigating Trade Tensions and Fueling AI Growth
- Nvidia's H20 Resurgence in China: A $10B Catalyst for AI Dominance and Semiconductor Growth
- US AI startups see funding surge while more VC funds struggle to raise, data shows
- Trading Technologies makes minority investment in SIGMA AI
- Nvidia’s China re-entry triggers market surge as AI chip sales resume with US backing
- Cathie Wood Thinks AI Will Create a $13 Trillion Software Opportunity -- 2 Unstoppable Stocks to Buy if She's Right
- 10 Buzzing Stocks to Watch as AI Trade Makes a Comeback