1. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 44
Palantir Technologies Inc. (NYSE:PLTR) is a software company, specializing in data analytics and AI. It provides software solutions to organizations so that they can conveniently visualize and analyze large datasets to make better data-driven decisions. The company works with both government agencies and commercial businesses and helps them make data-driven decisions.
In the second quarter of 2024, it generated a revenue of $678.13 million up 27.15% year-over-year. The earnings per share were $0.09, which was $0.01 higher than Street expectations.
US commercial revenue, excluding strategic contracts, climbed 70% year-over-year. A lot of this growth comes from existing customers signing expansion deals, in healthcare, energy, and finance. US government business grew over 8% for two consecutive quarters. This included a production contract from the Department of Defense to deploy an AI-enabled operating system, with an initial order of $153 million.
Management says that the company’s investments in infrastructure and oncology have positioned them as leaders in AI. As the GenAI market is projected to reach $1.3 trillion by 2032, Palantir Technologies Inc. (NYSE:PLTR) is a strong player and one of the best AI stocks to buy under $50. Both its businesses, government and commercial, are growing. The company is also winning market share in the US and global markets and is well-positioned to benefit from the ongoing digital transformation of both businesses and government departments.
The stock was held by 44 hedge funds at the close of Q2 2024. The largest shareholder is Renaissance Technologies, with a position worth $1,000,922,777.
Carillon Scout Mid Cap Fund stated the following regarding Palantir Technologies Inc. (NYSE:PLTR) in its first quarter 2024 investor letter:
“The top contributor to return for the quarter was Palantir Technologies Inc. (NYSE:PLTR). Sentiment improved on Palantir after it reported stronger than expected commercial customer revenue and free cash flow. U.S. commercial growth was especially encouraging, as U.S. commercial revenue was up by a large percentage year over year for the fourth quarter and U.S. commercial customer count grew nearly as much. We expect Palantir to become one of the premier artificial intelligence (AI) software providers, built on its Foundry and AIP platforms.”
While we acknowledge the growth potential of Palantir Technologies Inc. (NYSE:PLTR), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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