These 4 tech titles could crash by 86% (according to analysts)
Top 4 Tech Stocks at Risk of an 86% Crash, According to Analysts
The rise of Artificial Intelligence (AI) has been hailed as the next big trend after the advent of the Internet, promising to revolutionize sectors and markets, offering exponential growth opportunities and limitless innovation.
Tesla: Potential 86% Plunge
Tesla is among the stocks most at risk of a crash, with analysts fearing a potential 86% drop in its current value, down to $23.53 per share.
On one hand, Tesla has made history as the first car company to autonomously build vehicles on a large scale in over half a century, being the only player in the electric vehicle sector to generate recurring profits, with four consecutive profitable years until the end of 2023.
However, Tesla faces challenges as electric vehicles’ demand starts to decrease.
The company has reduced the selling prices of its four production models several times throughout 2023, resulting in a halving of operating income from the last quarter of 2022.
Additionally, Tesla has struggled to expand beyond being just a carmaker, with stagnating sales in the Energy Generation and Storage segment and low single-digit gross margins in Services.
Despite being valued at nearly 60 times the projected earnings for 2024, compared to traditional automakers trading at 6-8 times earnings per share, Tesla’s stock price might have room for further decline.
MicroStrategy: Facing an 85% Decrease
MicroStrategy, known for its AI-based business analytics software, could experience a severe devaluation, with analysts forecasting an 85% downturn from current prices, with a target price of $210.
While having a substantial amount of Bitcoins in its treasury, MicroStrategy’s core business has been stagnating, raising concerns about its long-term growth prospects.
Super Micro Computer: Risk of 72% Decline
Super Micro Computer, specialized in high-energy-efficient server solutions incorporating Nvidia’s high-end GPUs, might struggle to maintain its growth momentum after a 746% price surge in the last year.
Analysts predict a potential 72% drop in Super Micro’s value, particularly if Nvidia continues to face supply chain issues for its GPUs.
Palantir Technologies: Potential 78% Plunge
Palantir Technologies, a data-mining company essential for government operations, is also at risk of a sharp decline, with a projected 78% decrease in its value.
Despite its high market capitalization, Palantir’s valuation is driven by its unparalleled solutions and long-term government contracts, prompting varied opinions among analysts regarding its future performance.
While these tech stocks face significant challenges, the AI sector’s overall impact on the global economy is projected to reach $15.7 trillion by 2030, highlighting the transformative potential of AI despite short-term uncertainties.
