Jonathan Weber has downgraded Advanced Micro Devices (AMD) following a 70% share price surge, citing valuation concerns compared to rival Nvidia. Similarly, JR Research has downgraded Meta Platforms (META) due to concerns about aggressive AI investments without a monetizable cloud infrastructure. On the positive side, Lighting Rock Research upgraded Gartner (IT) despite weak government IT spending, believing the current price already reflects these challenges. The Techie also reversed course on Palantir (PLTR), upgrading the stock after stellar Q2 results showcased exceptional growth metrics.
Upgrades
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Gartner, Inc. (IT): Upgrade from Sell to Buy by Lighting Rock Research. Despite weak FY25 guidance and a 27% stock drop, the analyst sees medium-term growth potential from proprietary research and new AI services.
“I remain optimistic about its medium-term growth potential, with strong proprietary research portfolios. In addition, the company began to roll out AskGartner, its first AI agent… Apparently, Gartner is more likely to deliver weak business growth in FY25 due to government spending cuts and a challenging macro environment. I am confident in its long-term growth potential.”
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Palantir Technologies Inc. (PLTR): Upgrade to a cautious Buy by The Techie. Following stellar Q2 results that topped $1B in revenue, raised FY25 guidance, and demonstrated exceptional growth metrics, the analyst now sees a stronger case for the stock despite its premium valuation.
“I continue to think the premium valuation leaves no room for missteps, but Palantir is firing on all cylinders. So, while there’s no denying that the stock is even more expensive at these levels, making it ‘it’s priced for flawless execution,’ so far, that’s exactly what Palantir has delivered… I remain optimistic on the company’s long-term growth prospects, and this quarter reaffirms that the business is booming.”
Downgrades
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Advanced Micro Devices, Inc. (AMD): Downgrade from Buy to Hold by Jonathan Weber. After a 70% share price surge in just three months, AMD now trades at a premium to faster-growing Nvidia, which the analyst considers unjustified given Nvidia’s superior market position.
“Advanced Micro Devices’ recent share price run-up—more than 70% in just three months—has made its stock rather pricy, and the valuation premium over Nvidia seems illogical to me. I thus do not consider AMD especially attractive any longer and downgrade it from a Buy to a neutral rating.”
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Meta Platforms, Inc. (META): Downgrade to Hold by JR Research. The analyst expresses concerns about Meta’s aggressive AI investments without a monetizable cloud infrastructure layer, questioning whether its advertising business can support these investments long-term.
“I believe it’s also clear from Meta’s Q2 conference call that MSL’s mission to help Meta attain personal superintelligence isn’t going to be a short haul effort or an easy one to achieve… Without a monetizable cloud infra layer, Meta must rely on potentially aggressive investments in RL and MSL to convince investors that such projects could deliver an even higher operating margin profile in the long run (but when?).”
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