The AI trade has temporarily run into a roadblock over the past month or so, with many companies involved in the frenzy seeing their shares face negative price action after stellar runs.

Specifically, beloved NVIDIA NVDA, Vertiv VRT, and Palantir PLTR, have all delivered a sour performance, as shown below.

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Are the AI stocks on sale? Let’s take a closer look at recent results to get a better gauge on current demand trends and the broader outlook overall.

NVDA Growth Remains Robust

NVIDIA continues to be at the heart of the AI story thanks to its Data Center, which has provided unprecedented growth over recent years as companies continue to demand more computing power.

As expected, Data Center results were the highlight of the latest print, which were again fantastic and overall reflective of a more than healthy demand backdrop.  

Data Center revenue totaled a record $35.6 billion, up more than 90% YoY and an impressive 16% sequentially. Notably, the reported figure beat out our consensus estimate by $2.0 billion, continuing its recent streak of outsized beats.

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The valuation picture here remains highly attractive thanks to the outsized growth, with the current 1.0X PEG ratio sitting comfortably beneath the 2.5X five-year median and 5.5X five-year highs. The EPS outlook also continues to be notably bullish across the board, with the stock also sporting a favorable Zacks Rank #2 (Buy).

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Palantir Customer Count Surges

Palantir’s latest set of results came in strong as well, exceeding headline expectations and posting serious growth. Sales of $828 million shot 36% year-over-year and, more impressively, 14% sequentially. The strong sales growth was headlined by a 43% move higher in Customer count, reflecting the snowballing demand the company has been witnessing.

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Palantir also closed a record-setting $803 million of U.S. commercial total contract value (TCV), which shot 130% higher year-over-year and 170% sequentially. U.S. results were jam-packed with positivity, with Commercial and Government revenue growing by 64% and 45%, respectively.

Like NVDA, Palantir’s EPS outlook continues to be bullish across the board, keeping the stock a favorable Zacks Rank #2 (Buy). Earnings are forecasted to soar 31% in its current fiscal year on 32% higher sales.

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The valuation picture for shares remains quite rich, with the current 4.7X PEG ratio undoubtedly residing on the steep end. Nonetheless, the current ratio is down significantly from the 7.2X high made just last month in February.

Vertiv Raises Sales Outlook

Vertiv exceeded both consensus EPS and sales expectations in its print last month, with EPS soaring 77% on the back of a 26% move higher in sales. The growth rates here, particularly in sales, are reflective of very healthy underlying demand.

Importantly, Vertiv upped its full-year 2025 sales guidance into a band of $9.1 - $9.3 billion, with the midpoint reflecting roughly 16% year-over-year growth.

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In addition, Vertiv’s current fiscal year outlook remains bullish, with the current $3.59 per share consensus estimate suggesting 26% growth year-over-year. The stock boasts a bullish Zacks Rank #2 (Buy).

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The valuation picture here remains favorable, similar to NVDA's, with the current 0.8X PEG ratio reflecting both growth and value. The current value matches the five-year median but remains well below 1.4X five-year highs.

Bottom Line

The AI trade has gone sideways over recent weeks, with companies involved in the frenzy facing notable selling pressure.

While the selling has undoubtedly been harsh, it’s worth remembering that all three of these stocks – NVIDIA NVDA, Vertiv VRT, and Palantir PLTR – enjoyed tremendous runs over the past year, and the AI story remains fully intact.

All three continue to sport a bullish EPS outlook, carrying favorable Zacks Ranks. Both NVIDIA and Vertiv are trading cheaply relative to historical levels, and Palantir’s multiples have come off highs considerably over the past month. For those interested in joining the AI momentum, the recent dip could be a great opportunity. 

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This article originally published on Zacks Investment Research (zacks.com).

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