Top 10 AI Stocks on Wall Street’s Radar

8. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 43

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. Palantir has had a spectacular year fueled by artificial intelligence, but an analyst from Morgan Stanley has recently turned negative on the red-hot stock. On January 6th, analyst Sanjit Singh assumed company coverage with an “Underweight” rating and placed a $60 price target on the stock, an estimated 25% downside from Friday’s close. According to Singh, despite Palantir’s early AI strides, the potential risks seem to outweigh the potential rewards. The firm, which hadn’t previously rated the stock, acknowledged that the company has been performing well and has good momentum, but also contended that the stock price already reflects this success which is “more than priced in at the current multiple premium”.

“The skills/capabilities of the enterprise with respect to building AI applications should likely improve, which may make it difficult for Palantir to sustain its current level of momentum, creating downside risk given the premium valuation of the shares”.

-Morgan Stanley Analyst