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Market Overview of Palantir and Intel
Palantir Technologies (NASDAQ: PLTR) has seen its stock price surge by 140% year-to-date, while Intel (NASDAQ: INTC) has increased by 101%. Despite these gains, analysts have expressed concerns about their valuations, with predictions indicating significant downturns. Specifically, RBC Capital’s Rishi Jaluria has set a 12-month target for Palantir at $50 per share, suggesting a 72% downside from its current price of $181. Similarly, Matt Bryson at Wedbush and Amanda Tan at DBS Bank have projected a target of $20 per share for Intel, indicating a 50% downside from its current valuation of $40.50.
Valuation Concerns
Palantir is currently the most expensive stock in the S&P 500, trading at 160 times sales, while Intel’s stock is trading at 3.3 times sales, above its five-year average of 2.4 times. Both companies face market share challenges: Palantir is recognized for its capabilities in artificial intelligence and machine learning, but its high valuation is deemed unsustainable. Meanwhile, Intel has lost ground to competitors and must secure more external customers for its foundry business to maintain its market position.
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