Amid the ongoing 2025 market selloff, growth investors have a unique opportunity to buy and hold fundamentally strong stocks trading below their all-time highs. Companies like Palantir Technologies (NYSE: PLTR) and Nvidia (NASDAQ: NVDA) remain compelling investments as they continue to dominate the AI revolution despite short-term volatility.
Market Selloff Creates Buying Opportunity for Growth Stocks
According to a recent Barron’s report, Wedbush analyst Dan Ives remains “firmly bullish” on technology stocks, forecasting a resurgence to new all-time highs in the second half of 2025. The selloff, triggered by President Donald Trump’s latest tariff policies, has caused uncertainty in the market, but Ives believes the long-term AI revolution is just beginning.
Ives recommends buying beaten-down tech giants such as Nvidia, Apple (AAPL), Tesla (TSLA), Microsoft (MSFT), and Palantir. He argues that while these stocks have struggled in early 2025 after their AI-fueled rally, they remain the backbone of the next technological wave.
Despite acknowledging that Trump’s trade policies are “unnerving” for investors, Ives maintains his view that a massive $2 trillion AI capital spending cycle will eventually stabilize the market and drive substantial growth in the sector. He admitted to initially misjudging the immediate market reaction but emphasized that his stock recommendations are based on 1- to 3-year horizons rather than short-term fluctuations.
Palantir’s Explosive AI Growth Continues
Palantir Technologies has been at the forefront of the AI revolution, and its latest financial performance proves its continued momentum. In Q4, Palantir delivered outstanding results:
- Revenue Growth: Palantir’s total revenue surged 36% year-over-year to $828 million, exceeding guidance by 900 basis points.
- U.S. Business Strength: U.S. revenue grew 52%, with U.S. commercial revenue up 64% and U.S. government revenue climbing 45%.
- Artificial Intelligence Platform (AIP) Expansion: Palantir’s AIP remains a key driver of growth, allowing businesses to operationalize large language models and extract measurable AI value.
- Profitability Milestone: Adjusted operating margin hit a record-high 45%, and the company generated $517 million in adjusted free cash flow with an impressive 63% margin.
- Massive Contract Wins: Palantir closed $1.8 billion in total contract value, reflecting a 56% year-over-year increase. The company secured 32 contracts worth $10 million or more.
- Customer Growth: The total customer count rose 43% year-over-year to 711, while U.S. commercial customers increased 73% to 382.
For 2025, Palantir projects full-year revenue of approximately $3.75 billion, representing 31% growth. U.S. commercial revenue is expected to surpass $1.08 billion, reflecting 54% growth.
Wall Street’s Take on Palantir Stock
Out of the 19 analysts covering Palantir, the consensus remains mixed:
- 3 analysts rate PLTR as a “Strong Buy”
- 11 analysts recommend a “Hold”
- 1 analyst suggests a “Moderate Sell”
- 4 analysts have issued a “Strong Sell” rating
The average target price for Palantir stands at $85.11, aligning with its current trading price.
Nvidia: A Powerhouse in AI Infrastructure
Nvidia, a leader in AI and semiconductor technology, has been another key player in the ongoing AI revolution. Despite the recent market downturn, Nvidia remains a favorite among long-term investors due to its dominance in AI-powered data centers, gaming, and cloud computing.
As a cornerstone of AI infrastructure, Nvidia is expected to benefit from the anticipated $2 trillion AI capital spending cycle. With its GPUs powering AI training and inference workloads, Nvidia’s growth trajectory remains intact, making the current pullback an attractive entry point for investors.
Final Thoughts: The Future of AI Stocks in 2025
With top analysts still bullish on AI-driven tech companies, the current selloff presents an opportunity for growth investors to accumulate shares of high-quality companies like Palantir and Nvidia. As AI adoption accelerates and capital expenditures in the sector surge, these stocks could be primed for long-term upside. Investors looking to capitalize on the AI revolution should keep a close eye on these technology leaders as 2025 unfolds.
