Buy Now, thank yourself later: Wall Street analysts are betting big on these 2 AI stocks and predicts gains of 300% and 110%!

AI has been the biggest driver for the growth in the stock market lately and some Wall Street analysts see potential for two specific stocks: Palantir Technologie and Advanced Micro Devices, as per a report.

Wedbush analyst Dan Ives predicts Palantir can reach a trillion-dollar valuation in the next two or three years, meaning it has a 300% upside from its current $250 billion market value, reported The Motley Fool. Meanwhile, Rosenblatt Securities analyst Hans Mosesmann lowered his 12-month target price for AMD to $225 per share, yet that still represents a 110% upside from its current $107 share price.

Here's why analysts are so upbeat about these two AI stocks.

Palantir Technologies

Palantir, makes data analytics software to support both governmental and commercial clients. With the most impressive recent earnings reports, a growing customer base, and solid positioning in the AI value chain, analysts such as Mark Giarelli at Morningstar view Palantir as a possible future software juggernaut.

According to The Motley Fool, despite the continued bull run, its current valuation is extremely high, and investors need to be very cautious about jumping in at today's prices.

Advanced Micro Devices

AMD is a semiconductor company best known for developing Ryzen and Epyc CPUs for data centres and personal computers. It also develops Instinct GPUs for data centres, gaming, and artificial intelligence applications. Though it is behind Nvidia, analysts predict sales growth in the data centre segment should strengthen in the second half of 2025 as production of its latest Instinct MI350 GPU ramps up.

AMD CEO Lisa SuSu also told analysts that data centre AI products would increase from "more than $5 billion in revenue in 2024 to tens of billions of dollars of annual revenue over the coming years," as quoted by The Motley Fool.

FAQs

Can AMD compete with Nvidia in AI chips?
While AMD has made significant progress with its CPUs and GPUs, it still lags behind Nvidia, particularly in data centre GPUs. However, analysts believe AMD’s focus on data centre AI products will drive strong growth in the future.

Is now a good time to invest in these AI stocks?
Both Palantir and AMD have strong potential, but with Palantir's high valuation and AMD’s competition with Nvidia, investors should carefully consider the timing, as per The Motley Fool. Those who are bullish on AI’s long-term growth may find these stocks appealing, but it’s important to keep an eye on market trends and earnings reports.