As GenAI advances, concerns are growing that many jobs could be at risk as this revolutionary technology performs tasks traditionally performed by humans more efficiently and cost-effectively.

However, one prominent Wall Street figure does not share this gloomy outlook. Citadel founder and CEO Ken Griffin remains skeptical that AI will surpass humans in many areas.

“Some people are convinced that within three years, almost everything we do as humans will be done in some form or another by LLMs and other AI tools,” said Griffin, who has a net worth of $37.3 billion. “For a number of reasons, I’m not convinced that these models will make that kind of breakthrough any time soon.”

Certain scenarios are simply not suitable for machine learning models, says Griffin, such as cars driving through snow or adapting to a “world with changing regimes.”

Meanwhile, Griffin is also taking a contrarian approach to some of the biggest names in AI. In the second quarter, he decided to sell off a large portion of his Nvidia (NASDAQ: NVDA) holdings, but at the same time bought Palantir (NASDAQ: PLTR) shares.

So let’s take a closer look at these names and see what’s behind Griffin’s recent decisions. Using the TipRanks database, we can also find out what Wall Street analysts think about his decisions.

NVIDIA

Talk to any market observer about the AI-driven rally that’s driving the current bull market, and the conversation naturally turns to Nvidia. For a company that was once best known as a maker of GPUs for gamers, the semiconductor giant has become the undisputed king of AI chips in recent years. And the reason for that is pretty simple: Nvidia’s chips are the best on the market.

The success was so great that Nvidia briefly became the most valuable company in the world at the beginning of the year. A look at the latest quarterly results is symptomatic of a continuing trend of outperformance.

In the fiscal first quarter (April quarter), revenue rose 262.2% year over year to $26 billion, beating Wall Street’s forecast by $1.45 billion. Earnings performance was equally impressive, with adjusted earnings per share of $6.12, beating expectations by $0.54. And looking ahead, as has become the norm for the chipmaker of late, guidance again beat expectations: Nvidia forecasts second-quarter revenue of $28.0 billion, plus or minus 2%, while Wall Street expects $26.84 billion.

But Griffin doesn’t seem to be waiting to see if Nvidia delivers another stellar report at the end of the month (August 28). In the second quarter, he reduced his position by 80%, selling 2,421,072 shares.

Perhaps Griffin’s move is prescient, as the billionaire believes the stock has peaked and the road ahead may not be as smooth as it has been over the past year and a half. In fact, the company recently faced some problems after shipments of its new Blackwell AI chip were delayed due to a design flaw.

Investors should keep an eye on how this situation develops, says Gil Luria, an analyst at DA Davidson. “We believe the reported delays in Blackwell shipments are likely to be short-lived and have a limited impact, but they add a twist to the NVIDIA story,” Luria explained. “Our approach has been to expect record results for the rest of the year given the significant increases communicated by mega-cap customers, and to be more cautious for subsequent years, particularly calendar year 2026, as consensus expectations seem to indicate that NVDIA’s mega-cap customers will forego margin expansion forever. The delay in Blackwell shipments could cause a short-term blip that we need to carefully evaluate so as not to confuse it with the inevitable cycle turn.”

Luria also takes a cautious approach, rating NVDA stock neutral, while his $90 price target means the stock will lose 27% of its value over the next year. (To watch Luria’s track record, click here)

However, Griffin and Luria’s views are not shared by most market participants. The stock is rated a Strong Buy by a consensus rating based on a mix of 37 Buy recommendations and 4 Hold recommendations. The average price target of $144.17 suggests the stock will rise another 17% from here. (See NVDA Stock Forecast)

Palantir

From one big AI name to another. Palantir is another name associated with the current trend, and its stock has benefited enormously from all the hype – the value of its shares has more than doubled in the past year.

Palantir is known as a big data analytics company, offering software platforms that help companies integrate, manage and analyze large amounts of data. Since its founding in 2003, Palantir’s products have been used primarily by government agencies, including intelligence agencies and defense departments, but the company is trying to break into the commercial sector as well.

And this is where AI comes in. Last year, Palantir launched its Artificial Intelligence Platform (AIP), a set of tools and technologies designed to streamline the development, deployment, and management of AI models and applications. It integrates various AI capabilities such as machine learning, natural language processing, and data analytics into a platform that enables companies to leverage AI capabilities efficiently.

And the product has been gaining traction, as evidenced by its recent Q2 report. U.S. retail sales saw 55% year-over-year growth, well above the 45% forecast. Total revenue reached $678.13 million, representing total growth of 27.2% and beating expectations by $25.71 million. At the other end of the scale, adjusted earnings per share of $0.09 beat analysts’ forecast by $0.01. For the third quarter, the company expects revenue in the range of $697 million to $701 million, above the consensus estimate of $680.2 million.

Griffin must have liked all of this. In the second quarter, he bought 5,680,767 PLTR shares. These are currently worth more than $176.1 million.

The company also has a big fan, Wedbush analyst Daniel Ives, who applauded the latest results. He says, “Although the company has seen plenty of skeptics from Wall Street, this was a ‘proof’ quarter to prove its growing partner ecosystem as more use cases for its products lead to increasing demand for enterprise-scale generative AI solutions while gaining market share as the AI ​​revolution now reaches 2nd/3rd/4th derivatives. This was an important confirmation quarter/outlook for Palantir and the broader AI revolution thesis.”

In fact, Ives is the most prominent PLTR bull on Wall Street, rating the stock an Outperform (i.e. Buy), while his $38 price target implies the stock will rise ~22% over the next 12 months. (To watch Ives’ track record, click here)

However, Griffin and Ives are in the minority here. The stock has just a consensus rating of Hold, based on a mix of 5 Holds, 6 Sells, and 3 Buys. In addition, the average price target of $22.42 prepares investors for a 28% decline in the coming year. (See PLTR Stock Forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unifies all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important that you conduct your own analysis before investing.