NEWSLETTER
Think of two characters of the word “crisis” in Chinese: one represents danger and the other means opportunity.
This could be exactly what a company in the China has brought to the United States technological market.
The Chinese ai Deepseek has just overcome the download lists of the Apple application store. Depseek's father states that his badge model, R1, performs similar to expensive models such as OpenAi with fewer resources.
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The model uses NVIDIA H800, a much less expensive chip than the main US model model. They are using.
And the Deepseek model is open source, which allows developers around the world to modify it.
This has harmed the main players led by the chips manufacturer Nvidia (NVDA) As innovation threatens the demand of the high -end graphics processing units of Nvidia, which have been a cornerstone of its income promoted by ai.
Nvidia fell almost 17% on January 27.
Palantir (Fungus) A ai software that uses NVIDIA GPUs within its data analysis, was also affected by the sale of technology, 4.5% on Monday. But this might not be all bad news.
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Palantir was a great winner in 2024
Palantir increased 340% in 2024, which makes it one of the main winners within the S&P 500 and the Nasdaq 100 indexes. The Denver company was added to the S&P 500 on September 23 and the Nasdaq 100 index on December 23 .
The performance was promoted by the expanding role of the company in ai and a greater demand for technology and its applications.
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Palantir helps governments and companies analyze large data sets, with the main clients that include the United States government, the Airbus aerospace giant and the Merck Kgaa medical care commander.
In November, the company published results and guidance of Q3 well above the expectations of Wall Street: it won 10 cents per share, exceeding the 9 cents expected by the consensus of the Wall Street analyst. Income of $ 726 million also exceeded the estimate of analysts of $ 701 million.
Executive President Alex Karp proved the action to increase the demand for artificial intelligence.
“We absolutely uncommon this quarter, driven by a relentless demand for the that will not be reduced,” Karp said in the profit statement.
Palantir informs for the fourth quarter on February 3, 2025.
In its third quarter report, the company projected income between $ 767 million and $ 771 million for the quarter ending in December.
Wall Street analysts expect profits per share of 11 cents in revenues of $ 778.2 million for the fourth quarter. A year earlier, the company reported 8 cents per share in revenue of $ 608.4 million.
Analysts still reached in the Palantir stock
The Wall Street veteran, Stephen “Sarge” Guilfoyle, shared his views on Palantir's actions with Thestreet Pro. I had predicted the growth of Palantir already in May 2024.
Guilfoyle's career goes back to the 1980s on Nyse's floor. Its investment style is best described as hybrid, combining economic, fundamental and technical analysis to determine what actions are worth their investment capital with so much effort.
Guilfoyle argues that Nvidia will probably have a difficult time ahead.
“The margins will undoubtedly be pressed, even if the demand remains stable for chips with high -end ai,” he said.
This could be a good sign for software, since it means that Palantir will probably pay less for the chips it requires.
Related: analysts reveal ai actions selections by 2025, including Palantir
“The lowest prices could bring more buyers to the ai market and could reduce prices for users (read that, software firms) more than infrastructure builders (read that, high -end chips suppliers),” Guilfoyle added .
Although it sees substantial risks, Guilfoyle has added long positions in Palantir and Salesforce (CRM) .
Wedbush analyst Daniel Iives also reiterates his confidence in ai's shares, calling for sale the “gold purchase opportunity.”
“The launch of a competitive LLM model for consumer use cases is one thing … The launch of a broader ai infrastructure is a completely different ball game and nothing with Depseek makes us believe something different,” said Iives in A research note.
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- Goldman Sachs chooses the best sectors they have in 2025
IVES has been optimistic in the Palantir stock. He wrote in December that Palantir could continue to be a great winner in 2025 as the wave changes to the software.
Palantir closed to $ 75.44 on January 27. The action has dropped 2.25% in the year in which it is cited.
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