Prediction: 2 Artificial Intelligence (AI) Stocks That Will Be Worth More Than Palantir by 2026
The AI darling has high expectations built into its stock price, but these two offer great value today.
The S&P 500 has been on an incredible bull run over the last 28 months, and one of its biggest driving force has been the artificial intelligence (AI) industry. Recent advances have led to a lot of investor excitement about the potential for the technology to change nearly every business in the economy.
Few companies have benefited as much from the increases in AI spending and investor excitement as Palantir Technologies (NASDAQ: PLTR). The company helps government agencies and business enterprises make sense out of the mountains of data they generate and collect. When data science tools are more accessible to more decision-makers, they can make better decisions. The premise is that paying for Palantir's software can pay for itself quickly.
While Palantir has long served U.S. government agencies and the military, the release of its Artificial Intelligence Platform (AIP) accelerated its growth, particularly among commercial customers. Its revenues have increased 50% over the last two years. But Palantir's stock price has climbed a whopping more than tenfold in that same period, giving it a $204 billion market cap and a sky-high valuation. And that's after a more than 30% drop from the peak it hit earlier this month.
