Veteran fund manager sets bold new targets on Palantir, Nvidia stocks originally appeared on TheStreet.
The second half of 2025 got off to a muted start, as the S&P 500 dipped 0.1% on July 1 and hovered flat on July 2.
According to ADP’s latest report, the private sector shed 33,000 jobs in June, marking its first monthly drop since March 2023 and raising concerns about the U.S. economy. Economists had expected an increase of 100,000 jobs.
In April, the market was weighed down by uncertainty around President Donald Trump’s tariffs and economic growth. But those concerns began to ease in May and improved further in June.
That V-shaped recovery has now 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.
Versace manages TheStreet Pro’s portfolio, which outperformed the S&P 500 in the first half of the year. He noted that the McClellan Oscillator, a technical analysis tool used to measure market breadth and momentum, has yet to signal an overbought condition. That suggests the market may still have room to move higher, Versace wrote in a recent note on TheStreet Pro.
Still, Versace flagged 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 warned.
Versace is making adjustments to the Pro Portfolio, revisiting a few price targets and panic points for closely watched names like Palantir (PLTR) and Nvidia (NVDA) .
Palantir is known for providing AI-driven data analytics software to the U.S. government, military, and commercial clients worldwide, including JPMorgan Chase, Airbus, and Merck.
The company reported stronger-than-expected first-quarter revenue in early May and raised its full-year outlook as demand for AI tools increased. “We are delivering the operating system for the modern enterprise in the era of AI,” CEO Alex Karp said.
Related: Veteran trader boosts Palantir price target on defense-spending outlook
Palantir shares are up roughly 74% in 2025 and hit a record close of $144.25 on June 26.
Versace has raised the price target for Palantir to $160 from $140.
Verasce cited 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.
