2 Beaten-Down Artificial Intelligence (AI) Stocks That Will Surge at Least 40% Over the Next Year, According to Wall Street
Bram Berkowitz, The Motley Fool
Wed, July 8, 2026 at 3:50 AM GMT+5:30
5 min read
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The artificial intelligence trade is no longer one-size-fits-all. While many AI stocks have continued to surge, notable AI supply chain bottleneck plays, some of which are multibaggers this year alone, and other large AI players have not fared so well
This is a somewhat different dynamic from previous years, when it seemed that as long as a company had an AI component, its stock would go up and to the right
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The good news is that it also presents opportunities for AI value. Here are two beaten-down AI stocks that Wall Street expects to surge at least 40% over the next year (as of July 1)
1. Palantir Technologies: 43% average upside
After once seeming invincible, the AI decision-making company Palantir Technologies (NASDAQ: PLTR) is down over 24%
Palantir has struggled due to its monster valuation, and as investors have rotated into AI hardware names, specifically those addressing AI supply chain bottlenecks like memory and other components that need to scale, along with clusters of graphics processing units (GPUs). There have also been concerns about competitors, and Palantir has lost some contracts in Europe as foreign players have opted for domestic providers
When companies have sky-high valuations, roadblocks and hiccups can hit much harder because there’s so little room for error to begin with. However, Wall Street analysts clearly believe the thesis is still intact
Of the 20 analysts who have issued a research report on Palantir over the past three months, 13 have a buy rating on the stock, five say hold, and two have a sell rating. The average price target of $181 implies nearly 43% upside from current levels
Recently, Wedbush analyst Dan Ives reiterated his $230 price target for the stock, the highest on the Street. Ives sees the agentic AI trend unfolding in the company’s favor because Palantir’s platform can help agents complete real workflows with strong governance in place
Ives pointed to Palantir’s recent deal with Zeta Global, in which Palantir will partner with the company to build an AI infrastructure layer to support its agentic marketing efforts. He sees Palantir resonating well among enterprises and is not worried about the company relying too much on government contracts
