Key Points
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Artificial intelligence (AI) is projected to enhance the global economy by $15.7 trillion by 2030, although Wall Street analysts exhibit varying levels of optimism.
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Palantir Technologies (NASDAQ: PLTR), which has seen a 2,370% increase in value in 2023, is targeted for a 72% downturn by analysts, citing overvaluation at a price-to-sales ratio of 117.
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Tesla (NASDAQ: TSLA), valued at over $1 trillion, may face a 94% decline in value according to analysts, who criticize its reliance on hardware sales and the lack of high-margin software revenue.
AI is expected to contribute $15.7 trillion to the global economy by 2030, with over $6 trillion linked to productivity improvements. Despite optimism, analysts express skepticism about certain AI stocks, notably Palantir Technologies and Tesla. Palantir’s shares surged 2,370% this year, enhancing its market cap by $360 billion, but RBC analyst Rishi Jaluria warns of a likely 72% downturn based on valuation concerns. In a similar vein, GLJ Research’s Gordon Johnson predicts Tesla may lose 94% of its value due to its reliance on hardware and issues with promised innovations.
