Analysts Reveal Top AI Stock Choice: VRT, PLTR, or NBIS?

Concerns about an artificial intelligence (AI) bubble have recently surfaced, influencing investor sentiment. However, Wall Street analysts remain optimistic about specific AI stocks. Using TipRanks’ Stock Comparison Tool, three companies—Vertiv Holdings (VRT), Palantir Technologies (PLTR), and Nebius (NBIS)—were analyzed to determine the most appealing AI stock.

Vertiv Holdings: Resilient Despite Challenges

Vertiv Holdings specializes in power, cooling, and IT infrastructure for data centers and commercial facilities. The company recently reported impressive third-quarter results, aided by strong performances in the Americas and Asia Pacific regions.

Vertiv’s Q3 results showed a remarkable 28% organic revenue growth. The company has raised its full-year guidance, underpinned by a $9.5 billion backlog, despite challenges in the EMEA region.

• Recent acquisition of Purge Rite to enhance its liquid cooling services.
• Analyst Amit Daryanani from Evercore set the target price for VRT stock at $210.
• Analysts forecast a 25% upside potential for VRT stock.

Strong Buy Consensus for VRT

Vertiv stock has garnered a strong buy consensus, with 15 buy and two hold ratings. The stock has risen 41% year-to-date, reflecting its robust market position despite tariff pressures.

Palantir Technologies: Growth Amid Valuation Concerns

Palantir Technologies specializes in AI-driven data analytics. The company delivered solid Q3 results, posting a 63% revenue increase to $1.18 billion. However, valuation issues have impacted its stock performance.

Following a significant dip, PLTR stock is still up 105% this year. Goldman Sachs analyst Gabriela Borges set the stock’s target price at $188, emphasizing concerns over the stock’s high P/E ratio.

• PLTR is valued at a forward P/E of 213.9x, well above the sector average.
• Analysts have issued a Hold consensus rating for Palantir, indicating caution.

PLTR’s Future Potential

Despite its high valuation, Palantir is gaining a considerable share of customer wallets. Its AI Platform is experiencing strong demand across both government and commercial sectors.

Nebius Group: Rapid Growth and Strategic Partnerships

Nebius has emerged as a key player in the AI sector, especially following its partnerships with major tech companies like Microsoft and Meta Platforms. The company experienced an extraordinary 355% growth in Q3 revenue, attributed to a lucrative GPU-as-a-Service contract with Microsoft.

Gregory Miller from Citizens JMP set a target price of $175 for NBIS stock, highlighting the company’s substantial growth and market presence. Analysts believe that Nebius is well-positioned in the AI space with significant upside potential.

• Nebius aims to boost its power capacity to 2.5 GW by the end of 2026.
• It holds a Strong Buy consensus rating with five buy and one hold recommendation.

Conclusion: Diverging Opinions on AI Stocks

Despite the looming fears of an AI bubble, analysts exhibit varied levels of optimism for these three stocks. Nebius appears to have the most compelling growth prospects, followed by Vertiv, while Palantir faces scrutiny regarding its valuation.

Investors are encouraged to closely monitor these stocks as they navigate through this evolving landscape in the AI sector.