10 AI Stocks on Analysts’ Radar Right Now

8. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 43

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. The company is slated to report its Q4 earnings today, February 3rd. While it is true that Palantir’s artificial intelligence platform has positioned the company well in the AI market, analysts note that the hype surrounding it is also partly responsible.

“At 50x NTM rev, PLTR is the most expensive software name and >2x the next highest peer. The 4Q setup will be challenging as PLTR is lapping easy comps and any signs of non-accelerating growth could lead to further multiple compression.”

– Jefferies analyst Brent Thill.

According to Thill, Palantir has gained an advantage from easier year-over-year comps starting in 3Q23, along with growing momentum from its artificial intelligence platform (AIP). This helped drive faster growth through 3Q24. However, the year-over-year comparisons will get much tougher from Q4, making it much harder for Palantir to maintain or accelerate its growth.