Weekly AI Update: March 6th, 2025
Palantir Technologies Upgraded After 30% Selloff
Palantir shares rebounded nearly 7% after William Blair analyst Louie DiPalma upgraded the stock to market perform from underperform. The upgrade follows a 30% decline over the past three weeks, with DiPalma acknowledging that his stance on Palantir’s valuation has evolved. Despite concerns over its “frothy” multiple—still trading at 100 times 2026 free cash flow estimates—he believes the AI premium may persist given strong investor appetite. Palantir’s AI pipeline remains robust, and the company has demonstrated significant operating leverage, with revenue climbing 50% from 2022 to 2024 despite only a 3% increase in headcount. While Palantir is unlikely to meet its initial 2025 revenue target, its expanding margins continue to bolster its long-term prospects.
Arm Signs $250M Chip Deal with Malaysia
Arm Holdings has entered a $250 million agreement with Malaysia to supply chip designs and technology over the next decade. The deal is a key step in Malaysia’s strategy to transition from chip assembly to full-scale semiconductor production, supporting its ambition to export $270 billion worth of semiconductors by 2030. Currently responsible for packaging 10% of the world’s chips, Malaysia aims to establish 10 domestic chip firms with a combined $20 billion in annual revenue. As part of the agreement, Arm will open its first Southeast Asian office in Kuala Lumpur, expanding its influence in the region.
阿里巴巴集团 Surges 7% on AI Advancement
Alibaba shares jumped 7.5% in Hong Kong after unveiling the QwQ-32B model, an open-source AI system designed to rival DeepSeek while using just 5% of its data parameters. This latest advancement positions Alibaba at the forefront of China’s AI sector, reinforcing investor confidence in the company’s long-term growth. Alibaba has committed $52 billion to AI infrastructure over the next three years, one of the largest AI investments in China. As Beijing continues to support AI development, Alibaba’s cloud computing and e-commerce businesses stand to benefit, further fueling its market recovery.