nvidia, meta and palantir Updates

The AI sector continues to drive significant market growth, with the Nasdaq-100 climbing 20.2% and the S&P 500 gaining 16.4% in 2025. Nvidia and Meta Platforms stand out as top AI stock picks for 2026, reflecting strong investor confidence. Nvidia reported robust third-quarter revenue of $57.0 billion, a 62% increase, primarily fueled by its data center segment. CEO Jensen Huang emphasizes the high demand for AI, even amidst supply constraints, as data centers transition from CPUs to GPUs, creating an "AI flywheel effect." Nvidia is also adapting its sales strategy for H200 AI chips to Chinese customers, now requiring full upfront payment without refunds. This move helps manage uncertainties from potential policy shifts between China and the US, especially as Chinese AI giants plan to order up to two million H200 chips, exceeding current inventory. While Palantir Technologies also showed strong third-quarter revenue growth of 63% to $1.2 billion, driven by its Artificial Intelligence Platform, Nvidia is considered a more attractive investment for 2026 due to its valuation, trading at 25 times forward earnings compared to Palantir's approximately 175 times. Beyond these giants, other companies are significantly benefiting from the AI infrastructure build-out. SanDisk emerged as the S&P 500's top performer, with a 559.4% return, thanks to demand for flash storage in AI data centers. Lumentum surged 339.1%, providing optical interconnect components like EMLs for Nvidia's Blackwell generation. Allegro Microsystems saw its stock jump 11% after unveiling new power-sensing solutions for electric vehicles and AI data centers. Applied Digital also reported strong fiscal second-quarter results, with revenue nearly doubling to $126.59 million, driven by robust AI demand and discussions for new hyperscaler sites. In the legal AI space, Haveli Investments is acquiring a majority stake in Sirion, a company that has grown over 40% annually for five years and recently became profitable, aiming to accelerate its product innovation and global expansion. Meanwhile, SoundHound AI has faced recent headwinds, with its shares dropping 3.3% after Piper Sandler lowered its price target to $11 from $15, and another analyst further reduced it to $7.50 from $10.00, citing concerns about profitability. The stock also fell 39.4% in December 2025, largely due to a broader market shift away from unprofitable growth stocks, despite a significant partnership with OpenTable and 68% year-over-year revenue growth in Q3 2025. CEO Keyvan Mohajer remains focused on delivering high-quality AI systems, competing against established rivals like Microsoft and Apple.

Key Takeaways

• Nvidia reported Q3 revenue of $57.0 billion, a 62% increase, driven by its data center segment and high AI demand.
• Nvidia is requiring full upfront payment for H200 AI chips from Chinese customers to manage policy uncertainty and prepare for future production.
• Palantir's Q3 revenue grew 63% to $1.2 billion, with U.S. commercial revenue up 121% due to its Artificial Intelligence Platform.
• Nvidia is considered a better investment for 2026 than Palantir due to its valuation (25x forward earnings vs. Palantir's 175x).
• Meta Platforms is a top AI stock pick for 2026, using AI to boost digital advertising and investing heavily, including acquiring AI startup Manus for over $2 billion.
• SanDisk was the S&P 500's top performer in 2025 with a 559.4% return, fueled by demand for flash storage in AI data centers.
• SoundHound AI shares dropped after Piper Sandler lowered price targets (to $11 from $15, and to $7.50 from $10.00), with profitability concerns and a market shift from unprofitable growth stocks contributing to a 39.4% decline in December 2025.
• Allegro Microsystems' stock jumped 11% following the announcement of new power-sensing and gate-driver solutions for EVs and AI data centers, including the ACS37200 sensor.
• Applied Digital's Q2 revenue nearly doubled to $126.59 million, driven by strong AI demand and discussions for three new hyperscaler sites totaling 900MW.
• Haveli Investments is acquiring a majority stake in Sirion, a legal AI company that has grown over 40% annually for five years and recently became profitable, to accelerate product innovation and global expansion.

SoundHound AI Stock Drops After Price Target Cut

SoundHound AI shares fell 3.3% today after Piper Sandler lowered its price target to $11 from $15. The firm maintained a Neutral rating on the stock, but a broader market sell-off added negative pressure. This decline follows a previous drop as investors moved away from unprofitable growth stocks. Despite some positive analyst views after CES demonstrations, the price target cut and market weakness had a bigger impact. The stock is currently $10.88, trading 49.2% below its October 2025 high of $21.40.

SoundHound AI Shares Fall After Analyst Lowers Target

SoundHound AI stock dropped 3.3% today after Piper Sandler reduced its price target for the shares from $15 to $11. The firm kept a Neutral rating on the stock, and a general market sell-off also contributed to the decline. The company's shares are very volatile, but the market sees this news as meaningful. Three days ago, the stock gained 2.9% due to investor focus on AI at the CES 2026 conference. SoundHound AI is up 2.6% this year, trading at $10.88 per share.

SoundHound AI Stock Drops on Analyst Concerns

SoundHound AI shares fell 3.3% today after Piper Sandler analyst Joseph Steadman lowered his price target to $7.50 from $10.00. He kept a neutral rating, citing worries about the company's ability to become profitable soon. Despite this, SoundHound AI recently partnered with Hyundai Motor Group for in-car voice assistants and secured a new European automotive contract. These positive steps were overshadowed by the market downturn and financial concerns. The company will report its third-quarter earnings next week, and investors are watching for improvements.

Nvidia Tops Palantir as Better AI Stock for 2026

Nvidia and Palantir Technologies both showed strong third-quarter results with over 60% revenue growth. Nvidia's Q3 revenue rose 62% to $57.0 billion, driven by its data center segment. CEO Jensen Huang noted high demand for AI, even with supply limits. Palantir's Q3 revenue increased 63% to $1.2 billion, with its U.S. commercial revenue surging 121% due to its Artificial Intelligence Platform. However, Nvidia is considered a better investment for 2026 due to its valuation. Nvidia trades at 25 times forward earnings, while Palantir trades at about 175 times forward earnings.

AI Trade Boosts Top Tech Stocks in 2025

The AI trade drove significant growth in the 2025 stock market, with the Nasdaq-100 rising 20.2% and the S&P 500 gaining 16.4%. SanDisk was the S&P 500's top performer, with a stunning 559.4% return, fueled by strong demand for flash storage in AI data centers. Its Q3 2025 revenue grew 22.6% year over year. Lumentum also saw a 339.1% surge, benefiting from AI infrastructure build-out and its optical interconnect components, including EMLs for Nvidia's Blackwell generation. Lumentum's Q3 revenue growth was 58.4%, showing strong momentum.

NVIDIA Requires Upfront Payment for H200 AI Chips in China

NVIDIA is changing its sales strategy for H200 AI chips to Chinese customers, now requiring full upfront payment with no refunds. This move helps NVIDIA manage uncertainty from potential policy changes in China and the US. Chinese AI giants plan to order up to two million H200 AI chips, which is more than NVIDIA currently has in inventory. Securing upfront payments helps NVIDIA restart production lines and prepare its supply chain. This policy also ensures guaranteed customer commitments as NVIDIA focuses on future chips like Blackwell Ultra and Vera Rubin.

Allegro Stock Rises on New EV and AI Products

Allegro Microsystems stock jumped 11% after announcing new power-sensing and gate-driver solutions for electric vehicles and AI data centers. These new products include high-density 800V systems and the ACS37200 sensor, which reduces power loss by 90% in a smaller footprint. Wells Fargo added Allegro to its "Q1 2026 Tactical Ideas List," indicating institutional interest. The stock's rise reflects a real evolution in Allegro's product lineup for critical growth markets. Investors should watch for consolidation above $31, with $35 as the next crucial level.

Haveli Investments Acquires Majority Stake in Sirion AI

Haveli Investments, a US technology investment firm, will buy a majority stake in Sirion, a legal AI company. Sirion focuses on in-house needs and contract lifecycle management. This investment provides Sirion with more capital and support to speed up product innovation and expand globally. Sirion's CEO, Ajay Agrawal, stated this partnership will help build the platform customers rely on. Haveli's Sumit Pande noted Sirion combines its own small-language models with advanced large language models for AI workflows. Sirion has grown over 40% annually for five years and recently became profitable.

Applied Digital Stock Surges on Strong Q2 AI Demand

Applied Digital stock rose 7% after its fiscal second-quarter results beat expectations, with revenue nearly doubling to $126.59 million. Roth analyst Darren Aftahi highlighted strong demand trends and future lease agreements as key takeaways. The company is discussing three new sites with hyperscalers, totaling about 900MW, supported by $45 million from Macquarie. Aftahi believes another hyperscaler lease is very likely, potentially leading to over $1 billion in annual net operating income in five years. He increased his price target to $58, maintaining a Buy rating, seeing Applied Digital as a top AI pick.

SoundHound AI Stock Drops 39 Percent in December

SoundHound AI stock dropped 39.4% in December 2025, despite a significant partnership with OpenTable. This deal integrated SoundHound AI's booking systems with over 60,000 restaurant locations. The decline was mainly due to a broader market shift away from unprofitable growth stocks. In November, the company reported 68% year-over-year revenue growth for Q3 2025. The stock is now trading 50% below its October peak, and meme stock activity has decreased. CEO Keyvan Mohajer is focused on delivering high-quality AI systems to maintain its lead against rivals like Microsoft and Apple.

Nvidia and Meta Are Top AI Stock Picks for 2026

Investors remain confident in AI stocks, with Nvidia and Meta Platforms highlighted as top picks for 2026. Nvidia benefits from data centers shifting from CPUs to GPUs, driving a massive infrastructure upgrade. Its GPU shipments are strong, and the company profits from the AI flywheel effect, which increases demand for compute capacity. Nvidia trades at a reasonable 24.7 times forward earnings. Meta Platforms uses AI to boost its digital advertising, achieving 26% revenue growth in Q3 2025. The company is investing heavily in AI, including acquiring AI startup Manus for over $2 billion. Meta trades at 22 times forward earnings, showing confidence in its AI-driven growth.

Sources

• Why SoundHound AI (SOUN) Shares Are Trading Lower Today
• Why SoundHound AI (SOUN) Shares Are Trading Lower Today
• Why SoundHound AI (SOUN) Shares Are Trading Lower Today
• Nvidia vs. Palantir: Which Is the Better AI Stock for 2026?
• Top 10 Tech Stocks of 2025: How the AI Trade Defied the Skeptics
• Fearing Sudden Pullouts and Policy Shocks, NVIDIA Makes H200 AI Chip Sales to Chinese Customers Pay-First, With Zero Room for Refunds
• How EV And AI Product Cycle Are Fueling Allegro Stock Rally
• Haveli Investments To Buy Sirion
• Applied Digital Stock Jumps — and This Analyst Says the AI Trade Is Just ‘Catching Fire’
• Why SoundHound AI Stock Lost 39% Last Month
• Investors Are Still Bullish on AI Stocks. Here Are 2 to Buy in 2026.