Tech stocks came under pressure yesterday as investors pulled back from names tied to artificial intelligence and high-growth themes. Concerns over rich valuations and slowing momentum weighed on the sector, leading to a broad sell-off across major tech names. Meanwhile, Nvidia’s (NVDA) Q3 FY26 earnings tomorrow may act as a catalyst for the AI chip space by offering a clearer view of demand trends and spending plans across the industry.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
In the middle of the pullback, two names — Advanced Micro Devices (AMD) and Palantir (PLTR) — are back in focus. The question now is which name analysts see as the stronger pick after the dip.
Advanced Micro Devices (NASDAQ:AMD) Stock
AMD stock closed 2.6% lower on Monday and is down about 1.05% over the past two days, with the pullback largely tied to weakness across tech and AI-related names. Despite the recent dip, the stock is still up about 99% year-to-date, helped by demand for its new AI GPUs, strong Q3 results, and partnerships such as its deal with OpenAI (PC:OPAIQ) and its work with Oracle (ORCL) on the Instinct MI450 Series GPUs.
While the drop followed the broader weakness in tech, analysts remain split on what comes next for the stock. For instance, Seaport analyst Jay Goldberg maintained a Neutral rating on AMD. He acknowledged the company’s strong execution and clear product roadmap but said he does not see meaningful upside in the near term. He also pointed out that part of AMD’s long-term outlook depends on external factors, including funding tied to OpenAI, which he views as uncertain.
Meanwhile, Mizuho Securities analyst Vijay Rakesh reiterated his Buy rating on AMD stock and raised his price target to $285 from $275, indicating 15% upside potential from current levels. He sees stronger earnings ahead as the company expands deeper into AI and data center markets.
Palantir Technologies (NASDAQ:PLTR) Stock
Palantir shares closed 1.6% lower on Monday and fell more than 8% over the past five sessions on valuation concerns. The pullback also grew after well-known investor and hedge fund manager Michael Burry disclosed a bearish position against the stock, adding to the selling pressure.
Even with the recent decline, Palantir is still up more than 126% year-to-date. The strong run has been driven by robust Q3 results, rising demand for its AI software, and steady government contracts. Palantir’s Gotham platform remains a key part of its business, especially in defense, where analysts believe there is no direct replacement for its capabilities.
Despite strong results, Freedom Capital Markets analyst Almas Almaganbetov kept a Sell rating but raised his price target to $170 from $125. Though he acknowledged the company’s strong results and steady demand, he said the stock already assumes several years of strong growth. In his view, the current valuation leaves very little room for disappointment.
AMD or PLTR: Which Stock Offers Higher Upside, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared AMD and Palantir to see which name analysts currently prefer. AMD holds a Moderate Buy consensus, with an average price target of $281.78, suggesting about 17% upside from current levels. Palantir, on the other hand, has a Hold rating, with an average price target of $187.87, pointing to about 9.7% upside.
Based on current analyst views, AMD appears to have the stronger upside potential, while Palantir remains more of a wait-and-watch story after its recent run and valuation concerns.
