Billionaires Are Selling Palantir Stock and Buying 1 Supercharged Index Fund for the Artificial Intelligence (AI) Boom

Palantir shares have surged 285% year to date due to encouraging financial results and growing excitement about its position in the artificial intelligence economy. However, the billionaire-run hedge funds below sold Palantir stock in the third quarter, while buying shares of the Vanguard Information Technology ETF (NYSEMKT: VGT).While Palantir has been a rewarding investment, Wall Street is worried about valuation. Among the 20 analysts following the company, the median target price is $38 per share. That implies 42% downside from its current share price of $66. Even the highest target price of $57 per share implies 14% downside.That may explain why the fund managers above shifted away from Palantir in the third quarter. Regardless, the Vanguard Information Technology ETF offers exposure to the artificial intelligence boom with (arguably) less risk of a 40%-plus decline.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool