Palantir Technologies shares trade on an outrageous evaluation and may be overdue for correction.
Other actions of artificial intelligence could provide investors with more upwards without almost as much risk.
The shares listed here, the whole trade in much more profits of many of Palantir and can benefit from the most technological trends.
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Palantir Technologies is an irresistible tear. Even after a strong performance in 2024, where it rose 341% this year, it was another 78% this year. Every time the stock seems to be a space to rise higher, it finds another gear.
Investors have made an incredible return on the shares, but there is no doubt that its evaluation has gone out of control. With more than 590 times larger than their revenue, there are many things that can go wrong with a stock that is rated as high as Palantir.
The company takes advantage of the growing search for its platform for analyzing artificial intelligence (AI) data, but there are currently more fascinated ways to invest in AI. Three shares that trade with much more reasonable grades and this may be better investment in AI that should be taken into account today are Production of semiconductors in Taiwan (Nyse: tsm)., Dilated micro devices (Nasdaq: AMD)and Super micro -computer (Nasdaq: SMCI)S
Image source: Getty Images.
If you are an AI scourge, then it’s hard not to like the production of semiconductors in Taiwan. This is the dominant force in the chip world, creating the vast majority (about 90%) of advanced semiconductors. As you are looking for more AI chips, you also ask for Taiwan Semi’s foundry.
The business is solid with sales in the first three months of the year by about 42%, while the profits increased by an even higher percentage of 60%. If it wasn’t for the geographical location of Taiwan Semi and the worries that investors could have about the potential influence of the Chinese government on business, AI shares would probably be traded with a much higher estimate than it is currently.
The shares of Taiwan Semi has increased by 13% this year, but the shares are still trading only 27 times larger than its revenue – theft of a transaction compared to Palantir. With so much greater growth for AI, Taiwan semi -skilled -a refined investment for purchase and detention.
Investors have also been concerned about advanced micro devices, also known as Just AMD, and whether its chips can provide great competition to Nvidia‘is an advanced AI chips. AMD growth rate is accelerating and showing improvement, but with shares by 12% in the last 12 months, growth investors still do not seem convinced.
AMD has recently announced new AI (The Instinct Mi400) chips and they received a big vote of trust from OpenAi CEO Sam Altman, who cited them as “incredible”. While investors will want to see the results of this excitement, it is nevertheless a good sign if the executive director of one of the most popular AI companies not only sees the potential for AMD chips, but also plans to buy them.
When AMD reported its latest results in May, its largest line rose by 36% and looked good at $ 7.4 billion. The profits were even more impressive, rising by 476% to $ 709 million for the quarter, which ended on March 29.
AMD shares are traded more than 100 times a profit, but as its scale and profits continue to grow, it will look like a much more cheaper stock in the future. And even with her current evaluation, she still looks like a deal compared to Palantir.
Tech Company Super Micro Computer, only Supermicro was more known, grew by more than 55% in the value this year. But 27 times the bigger than its revenue, it can have much more space to increase higher.
Last year, it was difficult for Supermicro as things started strong, but the news about its auditor left raised red flags for investors; It finished the year only 7%. The good news is that the company has been able to bounce as it seems that it has put these fears to rest.
Supermicro makes servers and infrastructure that relies on hyperskalers and other companies involved in the development of AI. The big problem is that its gross margins are thin (about 10%) and this can mean a little mistake of mistake.
Supermicro stocks are at risk, but there is also a lot of potential forward as the costs of AI remain strong. His revenue in the first three months of the year amounts to $ 4.6 billion and increased by 19% a year. If you are convenient to take some uncertainty and risk, Supermicro can potentially lead to a much more return than Palantir, from now on, given its lower assessment and decisive AI products.
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David Jagielski has no position in any of the mentioned shares. Motley Fool has positions and recommends advanced micro devices, NVIDIA, Palantir Technologies and Taiwan Semiconductor Manufacturing. Motley Fool has a policy of disclosure.
Love Palantir Technologies? These 3 artificial intelligence shares can have much more upwards. Originally published by Motley Fool
