Since President Trump’s announcement of a truce lasting 90 days with China, which significantly reduces tariffs that both nations imposed upon each other on their products.
Even a few American tech shares have been pushed into ‘overbought territory’ by the rally. Bank of America Securities experts believe that some of these stocks could go even higher.
Palantir Technologies, Cadence Design Systems and others are among them. Take a look at the future of these two companies in 2025.
Palantir Technologies Inc (NASDAQ: PLTR)
Palantir’s stock was significantly higher than even Nvidia at the time of writing.
Mariana Perez Mora, an analyst at Bank of America, is convinced that PLTR has not yet satisfied its investors.
The investment firm’s latest research report raised its price target for Palantir to $150. This indicates that the shares could rise another 15% from their current level.
BofA is still positive about the AI stock, even though it has gained close to 75 percent in the last month. This is mainly because of the unique offering that the firm offers investors.
In a recent report, she said: “We view Palantir to be the leading market-defining company for organizations leveraging artificial Intelligence in order to achieve accelerated and tangible results.”
Mora praised the speed and scale with which its Nasdaq listed firm launches products, as well as onboards new customers.
Her optimistic note comes shortly after Palantir announced a solid Q1 and increased its revenue forecast for the entire year. The company, based in Denver, Colorado, is not attractive to income investors because it currently does not pay out a dividend.
Cadence Design Systems Inc. (NASDAQ:CDNS)
Cadence Design Systems was also more expensive than NVDA on a forward-price-to-earnings ratio at the date of this article.
Bank of America Securities analysts recommend that you buy it now at its current price because it is a high-quality compounder, with a resilient complex leverage.
CDNS, on the other hand, is more protected from risks related to tariffs than many of its peers in tech. In their most recent research note, they said that “we like Cadence’s leadership position in the EDA industry (Electronic Design Automation), which is geared to similar secular trends of semis with a much muted cycle.”
BofA also likes Cadence’s shares because of its strong financials. The multinational, based in San Jose, California, reported an impressive first quarter earlier this month and increased its expectations for the year.
“CDNS has defensiveness/scarcity value and is a unique beneficiary of rising chip complexity,” the investment firm told clients in its recent report.
The semiconductor stock, like PLTR does not pay a current dividend yield.
The ICD published the first version of this post: These 2 US tech stocks that are ‘overvalued,’ could soar in 2025’s second half.
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