Palantir has benefited from AI, but today his shares are sports a rich assessment.
Nvidia dominates the AI processors market and demand did not slow down.
Microsoft made early movements to AI already paid.
10 shares we like better than NVIDIA ›
Palantir Technologies(Nasdaq: Pltr) is emerging as a leading artificial intelligence company that offers the analysis of AI data to the US government and business. And the company is growing rapidly, with sales growing by 39% to $ 884 million and adjusting profits, increasing 63% to $ 0.13 per share in the first quarter.
Advertising: High profitability savings offers
Powered by Money.com – Yahoo can win a commission from the links above.
This second figure is particularly remarkable as many start -ups are not profitable, which makes Palantir an exception among many of its peers. The success helped him to target the company’s stock price to dizzying heights, accumulating nearly 500% in the last year. But this rapid rise means that his shares are already extremely expensive, traded in the price-pricing ratio (P/E) from 574.
Paying such a high premium is not usually a reasonable solution. So, here are two more AI companies, which are also leaders, with a much larger premium.
Image source: Getty Images.
Nvidia(Nasdaq: NVDA) It does not need an introduction for anyone who follows the technology sector carefully, but it is worth emphasizing some of the company’s strengths to show how dominant it is in AI. Here are some accents:
Its AI accelerators are approximately 70% to 95% of global AI data centers.
Revenues from the company’s data center reached 73% in the first quarter to $ 39 billion, and the corrected profit increased by 33% to $ 0.81 per share in the first quarter.
Even with all its growth, CEO Jensen Huang said that “the global search for AI infrastructure on NVIDIA is incredibly strong.”
Its financial results remain very strong and the company has little competition in the AI Data Center processors. Although there were some lumps of technology companies that are back from the costs in this category, there has not yet been a delay.
Data centers costs will reach $ 1.1 trillion in 2029, they will double what companies spend last year, according to the World World World on the analysis website.
It is worth noting that NVIDIA stocks have P/E out of 46, which means it is not necessarily cheap. Still, it’s far less expensive than Palantir, and the company may have a much more competitive ditch in AI than Palantir.
It is easy to ignore Microsoft(Nasdaq: msft) Because at first glance it was around forever. But while the younger AI companies can attract a lot of attention, Microsoft is already taking advantage of AI and continues to be a leading player in cloud calculations.
His Azure Cloud Calculations Service already has a 21% market share in his market, which makes profits against Amazonwhich holds 30% of the market. Cloud Services sales jumped 35% through its fiscal third quarter (which ended on March 31), showing that the company continues to find new ways to increase demand in the area.
And the management is reasonably investing in Openai early, providing the company with access to Chatgpt when it debuted. Since then, Microsoft has been integrating the chatbot into many of its services, giving it an advantage over other technological giants that are still trying to catch AI Wave (I look at you, I look, Apple).
This is one of the reasons why the shares have jumped 42% in the last two years, while Apple’s has won only 12%. With its early AI transitions, combined with the company’s strong cloud business, Microsoft is ready to continue to use the expansion of artificial intelligence. And since the stock has a P/E of only 36, it is far more cheaper than Palantir.
Palantir has a good product that earns AI, but I think buying the company’s shares, when it’s so expensive, can be a mistake. There are many other technology companies that take advantage of AI with stock prices, which are far fewer pennies, with NVIDIA and Microsoft two of the best at the moment.
Before you buy shares in NVIDIA, think about it:
Thehe Motley Fool stock adviser Analyst team has just identified what they think is 10 best shares For investors to buy now … and Nvidia was not one of them. The 10 shares that made the abbreviation could lead to the return on monsters in the coming years.
Consider whenNetflixMake this list on December 17, 2004 … If you have invested $ 1,000 at the time of our recommendation,You will have $ 653,702! ** Or when NvidiaMake this list on April 15, 2005 … If you have invested $ 1,000 at the time of our recommendation,You will have $ 870 207! **
It is now worth notingStock adviserThe total average return is988%-time-destroying superiority compared to172%for S&P 500. Don’t miss the top 10 list available when you joinStock adviserS
See the 10 shares »
*Stock Advisor since June 9, 2025
John Maki, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the Board of Directors of Motley Fool. Chris Neiger has positions in Apple. Motley Fool has positions and recommends Amazon, Apple, Microsoft, NVIDIA and Palantir Technologies. Motley Fool recommends the following options: Long January 2026. $ 395 Microsoft calls and short January 2026 $ 405 Microsoft calls. Motley Fool has a policy of disclosure.
Do you need to forget Palantir and instead buy these 2 technological shares? Originally published by Motley Fool
