President Trump Sold 2 Popular Artificial Intelligence (AI) Stocks. Wall Street Says Investors Should Buy Both.

President Trump's latest disclosure with the Office of Government Ethics shows that his brokerage accounts made 1,051 trades in June. Those accounts are managed by third-party financial institutions, meaning Trump himself was not responsible for the decision to buy or sell any security.

Even so, the trades are worth examining. For example, Trump's accounts sold a substantial amount of stock in two popular artificial intelligence companies in June, as detailed below:

• Palantir Technologies (NASDAQ:PLTR) was traded four times, with net sales totaling $414,000 to $785,000.
• Meta Platforms (NASDAQ:META) was traded seven times, with net sales totaling $687,000 to $4.2 million.

However, transactions that took place in June have little relevance today. In fact, most Wall Street analysts think Palantir and Meta Platforms are undervalued. Here are the important details.

Image source: Official White House Photo.

Palantir Technologies: 20% upside implied by Wall Street’s median target price

Palantir develops data analytics and artificial intelligence (AI) platforms to help customers in the public and private sectors integrate information, identify actionable insights, and automate work. Some analysts view Palantir as the emerging standard in enterprise AI due to its unique software architecture.

Traditional analytics platforms are largely built around dashboards that tell customers what is happening. But Palantir built its software around a decision-making framework called an ontology, which helps customers decide what should happen next and execute that action directly within the platform. In other words, Palantir doesn’t just analyze data; it actually connects data to operations.

Palantir is also popular because it provides flexibility and privacy. Its artificial intelligence platform is an agnostic orchestration tool for large language models, which means clients can swap models without rewriting underlying applications. Its platform also includes governance controls to ensure business data is never fed back to model developers.

Palantir reported phenomenal financial results in the second quarter. Revenue increased 93% to $1.9 billion, marking the 12th consecutive acceleration, and non-GAAP net income increased 215% to $0.41 per diluted share. The company also reported a phenomenal Rule of 40 score of 155%.

Palantir's share price is actually higher today than it was when President Trump's accounts sold the stock in June. Wall Street estimates Palantir's adjusted earnings will grow at 56% annually through 2027. That makes the current valuation of 142 times adjusted earnings look rather expensive. Nevertheless, among 36 analysts, Palantir has a median target price of $205 per share. That implies 20% upside from its current share price of $170.

Meta Platforms: 21% upside implied by Wall Street’s median target price

Meta Platforms reported mixed second-quarter financial results, missing estimates on the bottom line due to severance and legal expenses. Revenue increased 28% to $60.8 billion, driven by an increase in advertising impressions and price per ad. But GAAP net income dropped 13% to $6.18 per diluted share.

Meta recently released its AI agent Muse. Unlike the conversational chatbot Meta AI, which simply answers questions, Muse also automates tasks, such as shopping online, drafting documents, and scheduling appointments. Meta is uniquely positioned to benefit from the rise of consumer AI agents thanks to its vast data and scale, according to Morgan Stanely.

So, why did Trump's accounts sell Meta stock in June? The financial advisors managing the accounts may have been concerned about legal trouble. Meta lost a landmark lawsuit in March -- a jury held the company liable for contributing to a plaintiff's mental health issues -- and further fallout from the verdict was anticipated at the time.

Indeed, Meta just reached an $18 billion settlement with 48 states in August. The company will be required to enforce strict controls for users younger than 18, including a default time limit of two hours per day. The deal ended the federal trial, but Meta remains vulnerable as individual lawsuits continue to move through the courts.

I think investors should look through that noise. Those one-time charges will ultimately have little impact on Meta's long-term earnings growth trajectory. And Wall Street estimates earnings will increase at 20% annually over the next three years. That makes the current valuation of 23 times earnings look quite reasonable. Indeed, among 66 analysts, Meta has a median target price of $745. That implies 21% upside from the current share price of $613.

Trevor Jennewine has positions in Palantir Technologies. The Motley Fool has positions in and recommends Meta Platforms and Palantir Technologies. The Motley Fool has a disclosure policy.