24.05.2025

AI Stocks: Development and Market Outlook

AI Stocks: Development and Market Outlook

AI stocks, led by companies like Palantir and NVIDIA, play a central role in the current market development. In recent weeks, these stocks have shown a phase of stability and growth, prompting investors to pay attention to possible market changes.

1. Palantir

  • Current Development: The Palantir stock has risen sharply in recent trading days and is testing its yearly high from February 2025. Despite high insider sales and an extremely high valuation (P/E for 2025 at around 400), investors continue to show interest in the company.
  • Reasons for Growth: The high valuation is based on future expectations, particularly regarding rising AI demand and a strong market position among governments and businesses. Operational efficiency and potential in the AI-driven data analysis sector are also important factors.
  • Risks: The high valuation is only justified if growth continues or accelerates in the coming quarters. Investors are essentially paying a premium for future market leadership.

2. NVIDIA

  • Current Development: NVIDIA has achieved strong results in recent years, particularly due to the AI boom. The stock was added to the Dow Jones index in early November, replacing Intel.
  • Market Performance: In the last five days, NVIDIA’s stock rose by 15%, indicating sustained demand for AI technologies. However, over seven days there was a decrease of about 4.11%.
  • Outlook: Despite the strong performance, there are speculations that other companies might catch up with NVIDIA in the coming years. Alphabet, Amazon, Apple, Microsoft, and Tesla are cited as potential competitors.

Possible Market Changes

Investors should pay attention to the following factors:

  • Technological Advances: Further innovations in the AI sector could further accelerate the growth of companies like Palantir and NVIDIA.
  • Market Volatility: The technology sector is known for its volatility. Investors should be prepared for possible corrections or crashes.
  • Economic Conditions: Changes in the global economic situation may affect the demand for AI technologies and thus influence stock prices.

In summary, it is evident that AI stocks like Palantir and NVIDIA currently show strong momentum. However, investors should carefully weigh the potential risks and opportunities to be prepared for possible market changes.