AI-driven growth and margin strength prompt upgrades for AMD and Palantir, while PSIX and VET face downgrades due to valuation concerns.
Analysts upgraded Advanced Micro Devices (AMD) and Palantir Technologies (PLTR) after strong AI-driven performance and margin expansion. AMD’s data center revenue surged in Q1, with bullish Q2 guidance, while Palantir reported 85% year-over-year revenue growth and record GAAP operating margins.
Prior upgrades followed consistent earnings beats and sector leadership in generative AI adoption. Consensus estimates had already reflected optimism for both firms, but recent prints exceeded expectations, reinforcing their growth trajectories.
Power Solutions International (PSIX) and another stock were downgraded as valuation concerns emerged. Analysts cited reduced risk-reward appeal amid a stock rally and shifting focus to natural gas, which may limit near-term cash flow gains.