"After testing all-time highs, the major indices are in the red this morning. Dow futures are down 301 points. Nasdaq futures are down 344, as the S&P 500 sinks about 70 points. All thanks to a decline in Palantir's overvalued shares, despite the company beating earnings estimates and offering solid guidance. There are also concerns about the stretched valuations of other key AI stocks and their ability to boost profits to justify numbers."
"The firm also raised its price target to $480 from $415. As noted by the analysts, "While NVDA remains the leader and we still see upside there, AVGO has a greater magnitude of estimate upside as Google, Meta, and OAI ASICs ramp," as quoted by CNBC. "Google has long been the main ASIC customer for AVGO, but those volumes should become much more meaningful in C26/27.""
Major U.S. indices retraced after testing all-time highs as futures fell sharply amid a selloff centered on Palantir, whose shares declined despite beating earnings and providing solid guidance. The pullback intensified concerns about stretched valuations across key AI-related stocks and doubts about their ability to convert demand into sustained profit growth. Analysts issued notable upgrades and price-target raises, including Jefferies elevating Broadcom, Loop Capital and Goldman raising targets on Nvidia, and Citi reiterating a buy on CoreWeave while citing rising AI demand as a tailwind. Export licenses for Nvidia chips to the UAE also influenced expectations.
Read at 24/7 Wall St.
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