Productive artificial intelligence (AI) has taken Wall Street in a storm since the launch of Chatgpt Openai in 2022. However, more than two years later, this hype cycle goes long in the tooth. Let's discuss why Nvid (NASDAQ: NVDA). Testify (NASDAQ: TSLA)and Pante Technologies (NASDAQ: PLTR) He could be at risk of disadvantage as excitement AI may fade in 2025 and beyond.
Up 421% over the past three years, Nvidia has made itself a standard AI industry carrier by selling the Graphics processing units (GPUs) who train and run these advanced algorithms. The demand for prosperity allowed To grow Fiscal Revenue 2025 Third Quarter by 94% to $ 35.1 billion. That said, there are some early indications that this level of expenditure is unsustainable.
According to Professor Daron Acemoglu, AI technology may never be able to solve problems that are complex enough to justify its development costs. And low cost appearance, open source Big Language Models (LLMS) so Deepseeek China could make it even more difficult for Nvidia clients to benefit from its astronomical GPU expenditure.
The good news is despite the high growth rate of Nvidia, its On (P/e) A ratio of only 30 is relatively affordable compared to the NASDAQ-100 an average of 33. This drop suggests that some of the long -term challenges of Nvidia may already price Into their valuation, and shares may not face as much disadvantage risk with other companies on this list.
Tesla is a car company desperately trying to re -make itself as an AI company by pouring billions into the construction of a dojo – an AI supercomputer designed to support its autonomous driving strategy. If successful, These efforts could transform the company by producing more high edge software-as-a-service Revenue. But that's “if.”
Amazingly, even Tesla's CEO Elon Musk has called a dojo a “long shot” with a potentially high payment but a low probability of success. The problem is that the market treats the AI pivot as a deal has been made when it is not. Tesla is clearly still a car company. The automotive business represents 77% of its total sales. And he is struggling with the demand of stagnation -dra. Fourth quarter revenue fell 8% to ($ 19.8 billion) year -on -year.
Meanwhile, the front of Tesla is from 127 nearly four times the NASDAQ-100 Average, making his shares look overvalued with regard to his defective growth rate and the uncertainty about his AI transfer.
Like Nvidia, Palantir Technologies is another major AI winner, with shares up 757% over the last three years. The company is excited because of its potential to introduce AI technology world Government and military contracts. But while Palantir's growth is respectful, its stock valuation seems to have completely lost contact with reality.