Zacks Investment Ideas feature highlights NVIDIA, Vertiv and Palantir

For Immediate ReleaseChicago, IL – March 6, 2025 – Today, Zacks Investment Ideas feature highlights NVIDIA NVDA, Vertiv VRT and Palantir PLTR.Are These AI Stocks on Sale?The AI trade has temporarily run into a roadblock over the past month or so, with many companies involved in the frenzy seeing their shares face negative price action after stellar runs.Specifically, beloved NVIDIA, Vertiv and Palantir, have all delivered a sour performance, as shown below.Are the AI stocks on sale? Let’s take a closer look at recent results to get a better gauge on current demand trends and the broader outlook overall.NVDA Growth Remains RobustNVIDIA continues to be at the heart of the AI story thanks to its Data Center, which has provided unprecedented growth over recent years as companies continue to demand more computing power.As expected, Data Center results were the highlight of the latest print, which were again fantastic and overall reflective of a more than healthy demand backdrop.Data Center revenue totaled a record $35.6 billion, up more than 90% YoY and an impressive 16% sequentially. Notably, the reported figure beat out our consensus estimate by $2.0 billion, continuing its recent streak of outsized beats.The valuation picture here remains highly attractive thanks to the outsized growth, with the current 1.0X PEG ratio sitting comfortably beneath the 2.5X five-year median and 5.5X five-year highs. The EPS outlook also continues to be notably bullish across the board, with the stock also sporting a favorable Zacks Rank #2 (Buy).Palantir Customer Count SurgesPalantir’s latest set of results came in strong as well, exceeding headline expectations and posting serious growth. Sales of $828 million shot 36% year-over-year and, more impressively, 14% sequentially. The strong sales growth was headlined by a 43% move higher in Customer count, reflecting the snowballing demand the company has been witnessing.Palantir also closed a record-setting $803 million of U.S. commercial total contract value (TCV), which shot 130% higher year-over-year and 170% sequentially. U.S. results were jam-packed with positivity, with Commercial and Government revenue growing by 64% and 45%, respectively.Like NVDA, Palantir’s EPS outlook continues to be bullish across the board, keeping the stock a favorable Zacks Rank #2 (Buy). Earnings are forecasted to soar 31% in its current fiscal year on 32% higher sales.The valuation picture for shares remains quite rich, with the current 4.7X PEG ratio undoubtedly residing on the steep end. Nonetheless, the current ratio is down significantly from the 7.2X high made just last month in February.Vertiv Raises Sales OutlookVertiv exceeded both consensus EPS and sales expectations in its print last month, with EPS soaring 77% on the back of a 26% move higher in sales. The growth rates here, particularly in sales, are reflective of very healthy underlying demand.Importantly, Vertiv upped its full-year 2025 sales guidance into a band of $9.1 - $9.3 billion, with the midpoint reflecting roughly 16% year-over-year growth.In addition, Vertiv’s current fiscal year outlook remains bullish, with the current $3.59 per share consensus estimate suggesting 26% growth year-over-year. The stock boasts a bullish Zacks Rank #2 (Buy).The valuation picture here remains favorable, similar to NVDA's, with the current 0.8X PEG ratio reflecting both growth and value. The current value matches the five-year median but remains well below 1.4X five-year highs.Bottom LineThe AI trade has gone sideways over recent weeks, with companies involved in the frenzy facing notable selling pressure.While the selling has undoubtedly been harsh, it’s worth remembering that all three of these stocks enjoyed tremendous runs over the past year, and the AI story remains fully intact.All three continue to sport a bullish EPS outlook, carrying favorable Zacks Ranks. Both NVIDIA and Vertiv are trading cheaply relative to historical levels, and Palantir’s multiples have come off highs considerably over the past month. For those interested in joining the AI momentum, the recent dip could be a great opportunity.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Vertiv Holdings Co. (VRT): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks