Emily Rowland, co-chief investment strategist at John Hancock Investment Management, joined a discussion on CNBC’s ‘Squawk Box’ on February 13 to share her insights on the markets and the upcoming PPI (Producer Price Index) report. She thinks that the S&P earnings are highly underappreciated right now. She noted that the market’s reaction to inflation data has been asymmetric. While higher inflation numbers are often shrugged off, any relief from softer inflation prints tends to cause bigger moves in the markets. This was evident in the response to the CPI (Consumer Price Index) report. Regarding market performance, Rowland highlighted that the S&P 500 earnings were coming in with strong growth (16% year-over-year for the fourth quarter) and this growth is broad-based across sectors like healthcare and utilities. Financials also showed significant gains with a 50% increase.
On discussing President Trump’s announcement of retaliatory tariffs via Truth Social, Rowland said that her team avoids making tactical investment decisions based on political outcomes due to their unpredictability and rapid changes. In terms of attractive sectors for investment within US markets, she highlighted healthcare and industrial companies as promising areas due to their strong fundamentals and potential benefits from ongoing supply chain reshoring activities within the US. While acknowledging political factors can influence sector performance, her strategy focuses on longer-term economic trends rather than short-term political developments when considering investments in key indices like those represented by major US equities such as those found in the S&P 500 index.
With that being said, we’re here with a list of the 10 best-performing S&P 500 stocks so far in 2o25.
A close-up of a portfolio of stocks, emphasizing the broad equity portfolio of the company.
Methodology
We first sifted through the Finviz stock screener to compile a list of the best-performing S&P 500 stocks. We then picked the top 10 stocks with the highest year-to-date performance, as of February 17. The stocks are ranked in ascending order of their year-to-date performance. We’ve also added the hedge fund sentiment for each stock which was sourced from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Performing S&P 500 Stocks So Far in 2025
10. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 75
Year-to-Date Performance as of February 17: 25.02%
Philip Morris International Inc. (NYSE:PM) is a tobacco company that offers cigarettes and smoke-free products, which include heat-not-burn (IQOS), vapor, and oral nicotine (ZYN) products, as well as other consumer accessories. It also offers wellness and healthcare products.
Its transformation into a smoke-free company is fueling its stock surge, with shares up around 60% over the past year. This is driven by the performance of its smoke-free products, particularly ZYN nicotine pouches and IQOS heated tobacco units. Q4 2024 saw ZYN volume surge 46.2% to 183.8 million cans, and the company forecasts continued momentum with 2025 volumes projected to reach 780 to 820 million cans. This represents 34% to 41% growth. IQOS contributed with Q4 heated-tobacco-units volume up 5.1% due to the demand in Japan and Europe. The VEEV vaping business is also performing well in Europe.
Smoke-free products like ZYN and IQOS have higher gross margins than traditional cigarettes. In Q4 2024, revenue increased 7.2% year-over-year to $9.7 billion. Looking ahead, Philip Morris International Inc. (NYSE:PM) anticipates 6% to 8% revenue growth in 2025. Smoke-free volumes are expected to increase by 12% to 14%. The company plans to invest $1.5 billion in capital expenditures to expand ZYN production capacity.
Broyhill Asset Management highlighted the company’s 21% Q3 gain. The firm attributed it to the shift towards reduced-risk products, the Swedish Match acquisition (including the popular Zyn), and low youth usage despite overall popularity. It stated the following in its Q3 2024 investor letter:
“Shares of Philip Morris International Inc. (NYSE:PM) gained 21% in Q3. Philip Morris was by far the largest contributor for the quarter. Our core thesis focuses on the shift in business mix from combustible cigarettes towards reduced risk products as well as the company’s re-entry to the US market with its acquisition of Swedish Match. This year, Zyn has become wildly popular. So much so that the company can barely keep it in stock, even as it expands production. We recently discussed how youth usage of these products, a common critique of the company, remains under 2%, even as its overall popularity drives higher volume.”
9. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 63
Year-to-Date Performance as of February 17: 25.04%
Newmont Corporation (NYSE:NEM) is a gold producer and explorer, that also explores copper, silver, zinc, and lead. It is headquartered in Denver, Colorado, and has operations and assets across numerous countries in the Americas, Australia, and Africa.
Its stock price surge is driven by rising gold prices and the company’s strategic shift towards higher-quality assets. Its gold production, which totaled 2.1 million gold equivalent ounces in Q3 2024, is the core of its business and a key factor in its stock performance. Its focus on Tier 1 operations, which are large, long-life, and cost-efficient, is paying off. By divesting non-core assets, such as the recent sales of Porcupine, Musselwhite, and Éléonore, the company is streamlining its portfolio and concentrating on its most profitable mines. These divestitures have contributed to a $1.4 billion debt reduction effort.
Newmont Corporation (NYSE:NEM) benefits from the favorable environment of rising gold prices. This tailwind amplifies its profitability and reinforces investor confidence. The combination of strong gold production, a focus on high-quality assets, debt reduction, and a supportive gold price environment positions the company for success. Hence, its consensus price target of $53.44 implies a 23.98% upside.
8. Meta Platforms Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Year-to-Date Performance as of February 17: 25.82%
Meta Platforms Inc. (NASDAQ:META) develops products that connect people through mobile devices, PCs, VR/MR headsets, AR, and wearables. It operates through its Family of Apps (FoA) and Reality Labs (RL) segments. Its FoA includes Facebook, Instagram, Messenger, Threads, and WhatsApp, while RL focuses on VR, AR, and MR hardware, software, and content.
The company’s advertising revenue within its FoA segment grew 21% year-over-year to $46.8 billion in Q4 2024. This growth drives its stock price surges. It’s using AI in two ways to boost ad revenue. One is through Meta AI, which is a personalized assistant with over 700 million monthly active users. The other is Andromeda, an AI-powered machine learning system that improves ad targeting and performance.
These enhancements are driving its bottom line, with Q4 EPS growing by 60% year-over-year. The company’s commitment to AI is evident in its substantial capital expenditures, which reached $37 billion in 2024. AI infrastructure developments from these investments include massive data centers and advanced AI models like Llama.
The focus on AI is not limited to software. Meta Platforms Inc. (NASDAQ:META) is also exploring hardware innovations, such as the Ray-Ban Meta AI glasses, which have reportedly sold over 1 million units. It’s also reportedly developing AI-powered humanoid robots, creating an RL team to build the underlying AI, sensors, and software for other manufacturers. Tigress Financial reiterated a Buy rating on the company with a $935 price target on February 11 for these reasons.
Rowan Street Capital highlighted the company’s strong performance, its successful long-term investment (22% IRR), and its optimistic outlook based on various growth initiatives. It stated the following regarding Meta Platforms Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
7. Uber Technologies Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 136
Year-to-Date Performance as of February 17: 31.66%
Uber Technologies Inc. (NYSE:UBER) develops and operates technology applications that connect consumers with transportation, delivery, and freight services globally. Through its Mobility segment, it offers ridesharing, rentals, and other transportation options. The Delivery segment connects consumers with restaurants and retailers for food and other item delivery. The Freight segment provides a digital marketplace connecting shippers and carriers.
Its mobility segment, which is its ridesharing business, drives its stock performance. Strong Q4 2024 results, which included exceeding earnings estimates and generating $44 billion in revenue, have fueled investor enthusiasm. The company’s partnership with NVIDIA to integrate AI into its autonomous vehicle platform signals its commitment to innovation. Expanded AI tools for Uber Eats and a substantial stock buyback program demonstrate initiatives to enhance growth and shareholder value. Billionaire investor Bill Ackman’s large investment in Uber Technologies Inc. (NYSE:UBER) has also boosted market confidence.
The company’s progress in the AV space, particularly its partnership with Waymo, positions it well for the future of transportation. Despite competition, its established network and operational expertise provide a significant advantage. Loop Capital recently raised its price target to $89 from $86 on February 12, maintaining a Buy rating. Uncertainty around robotaxis may limit near-term valuation, but 2025 evidence will likely show that scaled commercialization is years away. Loop believes that the company’s position with multiple AV suppliers makes it a key beneficiary as a demand generator.
Earlier last year, RiverPark Large Growth Fund stated the following regarding Uber Technologies Inc. (NYSE:UBER) in its first quarter 2024 investor letter:
“Uber Technologies, Inc. (NYSE:UBER): UBER was a top contributor in the quarter following better than expected 4Q23 earnings and 1Q24 guidance. Gross bookings of $37.6 billion were up 22% year over year. Mobility gross bookings of $19.3 billion grew 29% over last year driven by a combination of product innovation and driver availability. Delivery gross bookings of $17 billion were up 19% from last year and continued to be strong throughout the quarter. 4Q Adjusted EBITDA of $1.3 billion, up $618 million year over year, was better than management’s guidance of $1.2 billion, and the company generated $768 million of free cash flow, up from a cash loss of $303 million last year. Management guided to continuing growth in 1Q Gross Bookings (20% growth) and Adjusted EBITDA (of $1.3 billion). The company hosted a well-received analyst day in February during which it guided to three year compounded annual growth rates for gross bookings of mid-to-high single digits and EBITDA of 30-40%, both above investor expectations. The company also guided to free cash flow conversion of 90% of EBITDA.
UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than a ride sharing and food delivery service; we also see it as a global mobility platform with 142 million users (by comparison, Amazon Prime has 200 million members) and the ability to penetrate new markets of on-demand services, such as package and grocery delivery, travel, and hourly worker staffing. Given its $5.4 billion of unrestricted cash and $4.8 billion of investments, the company today has an enterprise value of $165 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.”
6. Crowdstrike Holdings Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
Year-to-Date Performance as of February 17: 32.03%
Crowdstrike Holdings Inc. (NASDAQ:CRWD) provides cybersecurity solutions globally. Its unified Falcon platform offers cloud-delivered protection for endpoints, cloud workloads, identity, and data, which encompasses areas like threat intelligence, security management, and AI-powered automation. It primarily sells subscriptions to its platform and cloud modules.
Mizuho and Truist both raised the company’s price targets on February 12. Mizuho increased it to $450 from $385 with an Outperform rating due to positive market sentiment and demand for cybersecurity, data analytics, and SaaS. Truist raised its target to $460 from $385 with a Buy rating because of strong Falcon platform adoption and Falcon Flex deal traction.
The company’s Falcon Flex subscription model fuels its stock rally. FQ3 2025 saw over 150 Flex transactions, totaling over $600 million in deal value. Flex accounts now represent over $1.3 billion in total deal value, with average Flex subscriptions far exceeding typical contracts. This drives rapid platform adoption: Flex customers average over nine modules, with some more than doubling or tripling adoption. They spend more multi-millions on average compared to regular customers.
Flex is expected to deliver faster, larger ARR growth. This, combined with strong financial performance, which includes Q3 revenue going up by 29% year-over-year, has propelled Crowdstrike Holdings Inc. (NASDAQ:CRWD) stock upwards. The company’s innovative Falcon platform, market leadership, and customer retention solidify its position and justify its premium valuation.
Aristotle Atlantic Core Equity Strategy sees Crowdstrike Holdings Inc. (NASDAQ:CRWD) as well-positioned for growth in the expanding cloud cybersecurity market due to its competitive advantages and strong product offerings. It stated the following in its Q4 2024 investor letter:
“CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cybersecurity products and services that offer endpoint protection and threat intelligence solutions, enabling customers to prevent damage from targeted attacks, detect advanced malware and search all endpoints. The company’s open cloud architecture enables it and third-party partners to rapidly innovate, build and deploy new cloud modules that can provide customers with enhanced functionality across a myriad of use cases.
We see the cloud cybersecurity market as positioned to experience strong growth over the next few years, driven by continued migration from on-premises to cloud-based architecture. We believe CrowdStrike can benefit from this trend due to its early-mover advantage, multiple product offerings and native integrations with leading cloud platforms. The increasing threats from state-sanctioned cybercriminals using high-performance computing and AI necessitate higher spending on advanced cybersecurity products. The total addressable market (TAM) is projected to grow significantly over the next four calendar years. Additionally, CrowdStrike’s cloud-native architecture and unified platform approach provide competitive advantages, resulting in high customer retention and widespread adoption of multiple modules.”
5. Tapestry Inc. (NYSE:TPR)
Number of Hedge Fund Holders: 38
Year-to-Date Performance as of February 17: 34.24%
Tapestry Inc. (NYSE:TPR) offers luxury accessories and lifestyle products globally through its Coach, Kate Spade, and Stuart Weitzman brands. Its offerings span women’s and men’s bags, small leather goods, footwear, apparel, accessories, and home goods. These are sold through retail and outlet stores, e-commerce, and wholesale channels.
Coach’s success is the engine driving this company’s growth. It has captured the Gen Z demographic, who now represent nearly 60% of new Coach customers in North America. Strong sales of handbags, particularly iconic families like the Tabby (which saw sales double year-over-year) and the New York collection, alongside successful new designs such as the $295 Brooklyn bag (a top customer acquisition driver), are core to its performance. Global expansion is a vital component of Coach’s strategy, with the brand achieving 10% constant currency revenue growth in FQ2 2025. It experienced 4% growth in North America, 42% in Europe, and even saw a return to 2% growth in Greater China.
FQ2 revenue reached $2.2 billion, with earnings per share of $2 exceeding analyst expectations. Full-year revenue guidance has been raised to $6.85 billion from $6.75 billion. This strong performance positions Tapestry Inc. (NYSE:TPR) as a compelling stock. Coach’s combination of brand heritage, deep consumer understanding, and operational excellence is the key to its continued success.
4. Constellation Energy Corp. (NASDAQ:CEG)
Number of Hedge Fund Holders: 78
Year-to-Date Performance as of February 17: 41.84%
Constellation Energy Corp. (NASDAQ:CEG) generates and sells electricity in the US. Operating across five regions, it provides natural gas, energy-related products, and sustainable solutions. With ~33,094 megawatts of generating capacity from nuclear, wind, solar, natural gas, and hydroelectric sources, it serves diverse customers, which include utilities, municipalities, and businesses.
The company’s nuclear production Q3 nuclear production exceeded 41 million megawatt-hours of carbon-free electricity at a 95% capacity factor in Q3 2024, with exceptionally efficient refueling outages averaging under 18 days. It has the potential for at least 1,000 more megawatts via uprates and is seeing surging demand from data centers and large customers for its 24/7 clean power. This leads to the active pursuit of colocation and grid sales with long-term fixed-price contracts.
Constellation Energy Corp.’s (NASDAQ:CEG) planned acquisition of Calpine for $16.4 billion has boosted investor confidence. This will make it the largest independent power provider in the US and increase its natural gas-fired electricity generation capacity. The Calpine acquisition is a strategic move to capitalize on the growing electricity demand driven by AI and data centers.
As January ended, BofA lowered the company’s price target to $366 from $380 while maintaining a Buy rating. The stock declined due to market overreaction to DeepSeek’s more efficient AI models. BofA believes data center demand will remain strong near term, though potentially less so long-term, and efficiency gains may come sooner than expected.
Alger Mid Cap Focus Fund is bullish on Constellation Energy Corp. (NASDAQ:CEG) due to its leadership in clean energy. This is because the company benefits from increasing electrification and AI demand, and positive developments like rising electricity prices and the Microsoft agreement. Here’s what the fund said in its Q3 2024 investor letter:
“Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of clean energy in the U.S., with 32,400 Megawatts of capacity, 87% of which is nuclear generated. Its nuclear, hydro, wind, and solar facilities provide 10% of all clean energy on the U.S. grid and 22% of its clean baseload power. We believe the company stands to benefit from the increasing electrification of the U.S. economy. The rise of electric vehicles, data centers, and reshoring of American manufacturing is driving U.S. electricity load growth for the first time in nearly two decades. In our view, AI workloads are projected to significantly increase energy demand from data centers over the next few years. As American enterprises seek clean and reliable energy sources, nuclear power, which is carbon-free and dependable, stands out compared to intermittent renewables like wind and solar. Constellation, as an unregulated independent power producer, benefits from low fixed costs and can capture upside from rising electricity prices. We believe that potential opportunities for earnings growth include colocation (data centers near nuclear plants) and energy-matching programs with cloud providers willing to pay premium prices for nuclear energy. The Inflation Reduction Act also provides downside protection through a guaranteed minimum price for nuclear generation. During the quarter, shares contributed to performance from two events: 1) annual electricity auctions revealed tightening markets driven by increasing demand, driving higher pricing in the Middle Atlantic states, leading management to raise their fiscal 2024 earnings projections. 2) On September 20, 2024, Constellation Energy announced the signing of a 20-year power purchase agreement with Microsoft, which includes restarting Three Mile Island’s Unit 1 to supply energy.”
3. CVS Health Corp. (NYSE:CVS)
Number of Hedge Fund Holders: 63
Year-to-Date Performance as of February 17: 46.65%
CVS Health Corp. (NYSE:CVS) provides health solutions in the US through its Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers health insurance products and services. The Health Services segment provides pharmacy benefit management solutions. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs and related products.
Its Health Services segment, particularly its PBM (Caremark), contributed to the stock’s recent surge. Q4 2024 revenue was about $47 billion, though down 4% from a year-ago period. For 2025, the segment is projected to generate about $185 billion in revenue driven by Caremark. Caremark negotiates lower drug prices, generating an estimated $100 billion in annual value for the US healthcare system. Initiatives like TrueCost for price transparency and high biosimilar adoption, such as converting over 90% of Humira patients, and generating $1 billion in savings, highlight Caremark’s focus.
While growth is currently tempered by headwinds in Medicare-related healthcare delivery, core pharmacy services are strong, with improved healthcare delivery performance expected from 2026. This is further reinforced by analyst upgrades. RBC Capital analyst Ben Hendrix raised the company’s price target to $74 from $58 and maintained an Outperform rating on February 15. He believes that CVS Health Corp. (NYSE:CVS) is past its earnings trough, with 2025 guidance exceeding expectations.
Ariel Global Fund bought the company earlier in the past year, believing that the stock’s price drop due to PBM and Medicare concerns presented an attractive entry point for a potential rebound. It said the following regarding CVS Health Corp. (NYSE:CVS) in its first quarter 2024 investor letter:
“We bought American healthcare company, CVS Health Corporation (NYSE:CVS), following recent concerns related to potential new laws affecting Pharmacy Benefit Managers (PBMs)—intermediaries that negotiate drug prices between insurers and pharmacies—and issues with pricing in its Medicare Advantage plans, a type of health insurance for senior citizens. Shares presented an attractive entry point after the company lowered its 2024 outlook. While investor apprehension regarding the new laws appears to have eased, utilization of Medicare Advantage plans is also stabilizing. Our purchase of CVS reflects our efforts to capitalize on temporary setbacks and secure positions in companies poised for a rebound.”
2. Super Micro Computer Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 33
Year-to-Date Performance as of February 17: 57.19%
Super Micro Computer Inc. (NASDAQ:SMCI) develops and manufactures high-performance server and storage solutions globally. Its offerings range from complete systems and modular blade servers to subsystems, software, and accessories. It serves enterprise data centers, cloud computing, AI, 5G, and edge computing markets. It provides integration, configuration, software upgrades, technical documentation, training, and support services.
Its servers integrate NVIDIA GPUs, which are crucial for AI and data centers. The company recently projected massive revenue growth, forecasting $40 billion in sales by FY26. This outlook is fueled by the demand for AI-optimized servers, particularly those incorporating NVIDIA’s advanced chips, and Super Micro Computer Inc.’s (NASDAQ:SMCI) direct-liquid cooling (DLC) technology, which is expected to be adopted by a significant portion of new data centers.
While the company did lower its FY25 revenue guidance to between $23.5 billion and $25 billion, from a previous range of $26 billion to $30 billion, this was overshadowed by the long-term projection and positive developments regarding its financial reporting. Its stock recently surged following news of Meta Platforms’ investment in robotics. This could further increase demand for Super Micro Computer Inc.’s (NASDAQ:SMCI) servers. Analysts have raised their price targets on the stock, reflecting the company’s potential in the expanding AI infrastructure market. For instance, Wedbush analysts raised the stock price target on this company to $40 from $24 and reaffirmed a neutral rating.
Carillon Eagle Small Cap Growth Fund stated the following regarding Super Micro Computer Inc. (NASDAQ:SMCI) in its first quarter 2024 investor letter:
“Super Micro Computer, Inc. (NASDAQ:SMCI) provides accelerated computing platforms that are application-optimized, high performance, and high-efficiency server and storage systems for end markets such as cloud computing and artificial intelligence (AI). The company delivered impressive financial results and provided strong guidance that reflected the increasing demand for the infrastructure that supports artificial intelligence. After the report, the stock notably traded higher as investors grew more enthusiastic about the growth prospects aligned with the critical role the company plays in the development of data centers.”
1. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 43
Year-to-Date Performance as of February 17: 57.56%
Palantir Technologies Inc. (NASDAQ:PLTR) develops and deploys software platforms for intelligence agencies and other organizations. It offers Palantir Gotham for counterterrorism analysis, Palantir Foundry for data integration and analysis, Palantir Apollo for software deployment, and Palantir AIP for using large language models.
On February 4, Morgan Stanley raised the company’s target price to $95 from $60 and upgraded it to Equal-weight from Underweight. Citing six straight quarters of accelerating growth driven by US commercial and government contracts, they noted the company’s projected Q1 2025 revenue growth above 30% (vs. mid-20% consensus). Despite the high valuation, the upgrade reflects improving fundamentals and a strong 2025 outlook.
The company’s data platform segment, particularly its AI Platform (AIP) drives its revenue growth. AIP helps clients integrate AI into their operations, creating AI agents that automate tasks. This product has attracted new customers and propelled the company’s stock to new heights. In Q4, its revenue grew 36% year-over-year to $828 million. Palantir Technologies Inc. (NASDAQ:PLTR) projects Q1 2025 revenue of around $860 million (36% growth rate) and $3.75 billion for the full year 2025 (31% growth). Analysts, while praising its execution and market position, also caution about the stock’s high valuation and the potential for a correction. The company’s stock is up nearly 585% since early 2024.
Alger Mid Cap Focus Fund is positive on Palantir Technologies Inc. (NASDAQ:PLTR) due to strong results, the success of its AI platform, and potential government partnerships. Here’s what the fund stated the following regarding the company in its Q4 2024 investor letter:
“Palantir Technologies Inc. (NASDAQ:PLTR) builds advanced platforms for data integration, management, and security, enabling interactive, AI-assisted analysis for its users. Its core offerings include Palantir Gotham, designed for government clients, and Palantir Foundry, tailored for commercial customers. Originally focused on U.S. intelligence agencies, Palantir has expanded into defense contracts with western governments and entered the commercial market in 2016. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal third quarter operating results, along with management raising its full year 2024 revenue guidance. Management noted that the recent launch of its AI platform (AIP), which leverages generative AI to optimize business operations, has driven significant growth and investor interest. Additionally, we believe Palantir could be a key partner for the U.S. government’s new Department of Government Efficiency (DOGE), as its AI-driven platforms are ideally suited to help identify inefficiencies, allocate resources effectively, and achieve cost reductions.”
While we acknowledge the growth potential of Palantir Technologies Inc. (NASDAQ: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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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