5 Best AI Stocks Under $50

2. Palantir Technologies Inc. (NYSE: PLTR)

Number of Hedge Fund Holders: 38
Share Price as of May 12, 2021: $18.89 per share
Total Value of Hedge Fund Holdings: $1,902,514,000

Ranking 2nd in our list of 10 best AI stocks under $50 is Palantir Technologies Inc. (NYSE:PLTR). The Colorado-based data analytics company Palantir Technologies Inc. (NYSE:PLTR) was founded in 2003. In 2020, the US Army Research Laboratory awarded Palantir Technologies Inc. (NYSE:PLTR) a $91.2 million two-year contract for artificial intelligence and machine learning research and development.

Palantir Technologies Inc. (NYSE:PLTR) has a market cap of $35.2 billion. Palantir Technologies Inc.’s revenue in the first quarter of 2021 came in at $341 million. Shares of PLTR decreased 19% over the past twelve months. On April 23, Wolfe Research initiated Coverage on Palantir Technologies Inc. with a Peer Perform rating with a price target of $23. 

There were 38 hedge funds that reported owning stakes in Wells Fargo & Company at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $1.90 billion.

Guardian Fund mentioned that Palantir Technologies Inc.’s rate at which new customers come on board is improving, and sales are expected to rise faster than expenses in its Q4 2020 investor letter:

“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”