Two stocks in the AI spotlight by Dan Ives

In the last two years, the S&P 500 and Nasdaq Composite indices have grown by more than 20%. This positive trend continued into early 2025, but in recent weeks the markets have entered a consolidation phase.

First, the investment world was surprised by Chinese company DeepSeek, which claims to have developed highly sophisticated AI models using an older architecture than that used by US tech giants. Shortly thereafter, the new US administration under Donald Trump announced tariffs, raising concerns about the impact on global trade and economic growth.

Against the backdrop of these events, many investors are struggling to identify which stock price declines may present interesting buying opportunities. Dan Ives, senior technology sector analyst at Wedbush Securities, highlights two key companies that he believes are in an ideal moment for long-term investment.

Palantir Technologies $PLTR

The first stock Ives recommends is Palantir Technologies. This company develops data analytics software that finds applications in both the private sector and government institutions. The company introduced the Artificial Intelligence Platform (AIP) in 2023, which has fueled its revenue growth and profitability.

The success of AIP has put Palantir in the crosshairs of larger institutional investors, and its stock is up 340% over the past year, making it the best performer in the entire S&P 500. In 2025, their value climbed as much as 65%, but a sharp decline recently came.

The main reason for this drop is stock sales by company executives and changes in the Pentagon's budget that may affect government contracts. Still, Ives sees the current price level as favorable, as Palantir remains a key player in the AI field and its long-term prospects remain stable.

Nvidia $NVDA

The second company that Ives identifies as an attractive investment is Nvidia. The company has been synonymous with growth in recent years as demand for its graphics processing units (GPUs) has reached extremes. Among Nvidia's biggest customers are tech giants such as Meta, Microsoft, Alphabet, Tesla and Amazon, which have repeatedly acknowledged the company's key role in generative AI at their earnings conferences.

However, concerns were raised in January 2025 after DeepSeek announced that its models were trained on older and less powerful GPUs from Nvidia. This led to a drop in the stock price as investors began to question whether the new Hopper and Blackwell chips really justified their price.

Despite this uncertainty, the outlook for Nvidia remains very positive. Global investment in AI infrastructure is expected to reach $325 billion in 2025, a signal that demand for Nvidia's powerful chips will not decline. In addition, the company is about to launch a next-generation architecture called Ruby that could take its products to the next level.

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

Source: nasdaq.com