The ongoing trade wars triggered by the tariffs imposed under the Trump administration are weighing on investor sentiment on technology stocks. While several tech stocks enjoyed a solid rally last year due to the optimism around artificial intelligence (AI), they are now under pressure due to concerns about their massive investments, especially after the fears created by the emergence of Chinese startup DeepSeek. Amid a volatile backdrop, we used TipRanks’ Stock Comparison Tool to place Apple (AAPL), Nvidia (NVDA), and Palantir (PLTR) against each other to find the most attractive tech stock, according to Wall Street analysts.
Apple (NASDAQ:AAPL)
Apple stock is down 6% so far this year. The company delivered better-than-expected earnings and revenue for the first quarter of Fiscal 2025. However, iPhone sales declined slightly, with the company blaming production issues related to iPhone 14 models in China.
Another concern was the 11% year-over-year decline in revenue from China, a key market for Apple. The company is facing stiff competition from local players in China. On the positive side, Apple’s recently announced deal with Alibaba (GOOGL) to integrate AI features in iPhones in China is expected to boost the sales of the company’s largest product category.
Meanwhile, the company’s Services business continues to grow at an attractive pace. Notably, Apple’s Services business carries a higher margin than its products business. Looking ahead, the company is optimistic about the demand for its products and services, enhanced by AI features.
Is Apple Stock a Good Buy?
Earlier this month, UBS analyst David Vogt reiterated a Hold rating on Apple stock with a price target of $236. The analyst noted that based on his firm’s analysis of Counterpoint data, global iPhone units were up 3% year-over-year in January, growing roughly 200 basis points slower than the overall market due to relative underperformance in China and Europe. In the U.S., iPhone sell-through declined about 2.5% compared to a market decline of 4.4%. Overall, Vogt noted that the demand for iPhone remains muted in key markets.
Overall, Wall Street has a Moderate Buy consensus rating on Apple stock based on 18 Buys, 11 Holds, and four Sell recommendations. The average AAPL stock price target of $250.48 implies 6.2% upside potential.
Nvidia (NASDAQ:NVDA)
After witnessing a stellar jump in 2024, NVDA stock has declined 14% so far this year. The semiconductor giant reported stellar results for the fourth quarter of Fiscal 2025 and issued a solid outlook for the ongoing quarter, thanks to robust demand for its advanced GPUs (graphic processing units) that are required to build AI models.
Despite the stellar results, shares are in the red so far this year due to trade wars triggered by the tariffs imposed by the Trump administration on China, Canada, and Mexico, chip export restrictions, and growing competition. Moreover, Singaporean authorities are investigating whether Dell (DELL) and Super Micro Computer (SMCI) server shipments containing Nvidia chips were making their way to China in violation of U.S. export restrictions. Singapore is the second-largest market for Nvidia after the U.S.
Despite all these near-term pressures, most analysts remain bullish on Nvidia stock due to the stellar demand for its AI chips and solid expectations from the Blackwell platform.
What Is the Prediction for NVDA Stock?
Recently, Bernstein analyst Stacy Rasgon reiterated a Buy rating on NVDA stock with a price target of $185. The analyst thinks that the pullback in Nvidia stock due to multiple reasons, including supply chain worries and tariffs, is making its valuation increasingly attractive. Rasgon contends that worries about the AI trade being over seem slightly premature. He highlighted certain potential catalysts for NVDA stock, including solid AI spending intentions and the upcoming GTC (GPU Technology Conference) event.
With 39 Buys versus three Hold recommendations, NVDA stock scores a Strong Buy consensus rating on TipRanks. The average NVDA stock price target of $178.18 indicates about 54% upside potential.
Palantir Technologies (NASDAQ:PLTR)
Palantir Technologies stock has rallied 251% over the past year and 11.6% year-to-date, thanks to solid demand for the company’s products, mainly its Artificial Intelligence Platform (AIP). Last month, the data analytics company delivered market-beating Q4 2024 results and outlook.
In the letter to shareholders, CEO Alex Karp highlighted that the momentum across Palantir’s Commercial and Government businesses is “unlike anything that has come before.” Remarkably, the company’s U.S. Commercial revenue grew by 54% in 2024, while the U.S. Government business registered a 30% rise in its top line.
Despite the optimism reflected in the company’s outlook, there are concerns about the impact of potential budget cuts by government agencies on the company’s Government business. Also, several analysts believe that the company’s solid growth expectations are already baked into the stock.
Is PLTR a Buy, Sell, or Hold?
On Monday, Wedbush analyst Dan Ives reiterated a Buy rating on PLTR stock with a price target of $120. Ives believes that the company is helping “lead the AI Revolution into the use case phase as its AIP product moat is unmatched.” Ives added that PLTR stock remains one of the top names to own this year and the recent pullback presents an attractive buying opportunity, with the company seeing robust traction across both federal and commercial businesses. Ives believes that PLTR stock could see a trillion market cap in the years ahead.
Several other analysts do not share Ives’ optimism on PLTR stock. Wall Street has a Hold consensus rating on Palantir stock based on four Buys, nine Holds, and five Sells. At $93.13, the average PLTR stock price target indicates 10.3% upside potential.
Conclusion
Wall Street is highly bullish on Nvidia stock and cautiously optimistic on Apple due to near-term challenges. Meanwhile, analysts are sidelined on Palantir, mainly due to the stock’s lofty valuation following a stellar rally. Analysts see solid upside potential in NVDA stock, reflecting strong belief in the demand for the company’s GPUs amid the ongoing AI wave.