Artificial intelligence (AI) stocks CoreWeave (CRWV) and Palantir (PLTR) are attracting retail investors with their impressive growth, but experts warn that the market is driven more by excitement than fundamentals. CoreWeave’s stock has nearly quadrupled since its March IPO, while Palantir’s has surged 460% in the past year.
Despite solid demand for AI tools and revenue forecasts, both companies have sky-high valuations. Palantir trades at 71 times sales, the highest in the S&P 500, while CoreWeave trades at 10 times sales despite posting a significant loss. Analysts predict that Palantir’s stock has less room to fall than CoreWeave’s, but some past AI-driven rallies have ended in big losses.
Retail investors are piling into these stocks alongside high-risk assets like leveraged ETFs, with Interactive Brokers data showing they are among the most heavily traded stocks. Bulls point to Nvidia’s investment and Palantir’s strong revenue forecasts, while bears warn of a potential “meme investing” bubble that could burst with big losses.
Source: https://www.tipranks.com/news/investors-are-ignoring-fundamentals-says-ibkr-about-coreweave-and-palantir-pltr-stocks