12 Best AI Stocks to Invest in According to Reddit

2. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 64

Palantir Technologies Inc. (NASDAQ:PLTR) specializes in AI-powered software platforms for data analysis and operational decision-making. Its solutions, which include Palantir Gotham, Foundry, and the AI Platform, utilize advanced AI and ML to uncover hidden patterns in complex datasets and enable real-time responses.

The company’s AI Platform (AIP) facilitates deploying LLMs into enterprise workflows. The company’s Q4 2024 revenue hit $828 million, which was up 36% year-over-year. The full-year revenue reached $2.87 billion, which was a 29% improvement. AIP adoption is surging, especially in the US commercial sector. Q4 US commercial revenue grew 64% year-over-year to $214 million. The company’s enterprise autonomy focus automates complex processes, like reducing bank back-office tasks from five days to three minutes.

On March 18, Jefferies analysts reiterated their Underperform rating for the company with a price target of $60. Despite being impressed by the ROI case studies presented at the company’s AI Platform customer event, which showcased the transformative impact of its products, Jefferies maintains its Underperform stance.

Palantir Technologies Inc.’s (NASDAQ:PLTR) strong Q3 results, increased revenue guidance which was driven by its AI platform, and potential government partnerships contributed positively to Alger Mid Cap Focus Fund’s performance. It stated the following (NASDAQ:PLTR) 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.”