Veteran fund manager sets new high targets for Palantir and Nvidia, warning of market risks ahead
Summary
A veteran fund manager, Chris Versace, has set bold new targets for Palantir and Nvidia stocks. According to ADP’s latest report, the private sector shed 33,000 jobs in June, raising concerns about the U.S. economy. The market was weighed down by uncertainty around President Donald Trump’s tariffs and economic growth in April but began to recover in May and June. Despite a muted start to the second half of 2025, with the S&P 500 dipping 0.1% on July 1 and hovering flat on July 2, Versace believes that the market may still have room to move higher.
Market Sentiment and Overbuying
The recovery in the market has pushed both the S&P 500 and Nasdaq Composite into overbought territory, according to Wall Street veteran fund manager Chris Versace. Overbuying means investors may have rushed in too quickly, often pushing the price higher than its true value. However, Versace noted that the McClellan Oscillator, a technical analysis tool used to measure market breadth and momentum, has yet to signal an overbought condition. This suggests that the market may still have room to move higher.
Versace manages TheStreet Pro’s portfolio, which outperformed the S&P 500 in the first half of the year. He warned about growing risks tied to heightened market expectations around upcoming potential catalysts. "As the market grinds higher, the greater the probability that this week’s economic data, pending trade deal announcements, or the Trump fiscal policy bill that gets passed could disappoint the market," he wrote in a recent note on TheStreet Pro.
Palantir Stock Price Target
Palantir shares are up roughly 74% in 2025 and hit a record close of $144.25 on June 26. Chris Versace has raised the price target for Palantir to $160 from $140, citing several recent developments as reasons for the increase: NATO leaders pledging to boost defense spending to 5% of GDP by 2035, former President Trump’s scheduled “AI Action Day” on July 23, and Palantir’s expanded partnership with Accenture Federal Services to deepen its presence in U.S. government agencies.
However, Versace noted that "Should market forces pull PLTR shares back toward their 50-day moving average near $125, that would be a reason for us to reconsider our Two rating." This current Two rating reflects stocks he would add on pullbacks or following successful technical support tests.
Nvidia Stock Price Target
For Nvidia, Versace has a new price target of $185, up from $175 amid strengthening demand signals for AI accelerators and data center chips. The stock has gained 14% year-to-date and closed at a new high of $157.99 on June 30. Several developments have driven Nvidia’s rally since its April low: the U.S. and China agreeing to temporarily pause elevated tariffs, sentiment improving further when the Trump administration scrapped the Biden-era AI diffusion rule, which was another export control on advanced AI chips.
Additionally, Nvidia got a boost from announcements to supply AI chips to Saudi Arabia’s Humain, a rising tech player in the region. On May 28, Nvidia posted strong fiscal first-quarter results: adjusted earnings came in at 96 cents per share on $44.06 billion in revenue, beating Wall Street’s estimates of 93 cents and $43.31 billion.
Alongside these target updates, Versace is raising the Palantir panic point to $95 from $90, and Nvidia’s to $120 from $110. He also trimmed the Nvidia position, selling at a price near its all-time high: "Should the market melt-up continue, odds are we may do some additional register ringing."
Market Volatility
Market volatility remains a concern for Versace, as he expects upcoming economic data and trade deal announcements to impact market performance. The veteran fund manager also warned that investors should be prepared for potential disappointment in the short term.
Conclusion
In conclusion, Chris Versace’s bold new targets for Palantir and Nvidia stocks reflect his optimism about their continued growth potential despite market volatility concerns. While overbuying is a concern, Versace believes that some fundamental growth drivers could push these stocks higher in the near future.
