7 Unstoppable Artificial Intelligence (AI) Stocks To Buy Now

5. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders: 44

Performance (Year-to-Date) as of September 4: 77.69%

Palantir Technologies Inc. (NYSE:PLTR) is a company that specializes in software platforms for big data analytics, which means that it uses AI to help other companies make better, data-driven decisions, by understanding, visualizing, and analyzing large amounts of complex data.

The company specializes in deploying enterprise AI in production. The expertise and focus position it uniquely to capitalize on the $600 billion AI opportunity. Last quarter, it signed 27 deals worth more than $10 million.

In June, Tampa General signed a 7-year expansion to use the company’s AI platform (AIP) for care coordination, resulting in a 30% reduction in patient length of stay. Panasonic Energy of North America signed a three-year expansion to use AIP across finance, quality control, and manufacturing operations. AARP is leveraging AIP to deliver personalized experiences to its 29 million monthly visitors.

In August, it partnered with Wendy’s to use AI for supply chain optimization and partnered with Microsoft to bring AI to US national security, integrating Microsoft’s Azure OpenAI Service into Palantir’s AI Platform. Later, it also partnered with Sompo, a Brazilian insurer.

In its 27% year-over-year improvement for Q2 2024, the revenue generated was $678.13 million, with $0.09 in earnings per share. Both of these numbers came out higher than Street estimates for the quarter.

A venture capital firm, Sequoia, noted that the revenue expectations from the AI ecosystem’s infrastructure build-out for Palantir Technologies Inc. (NYSE:PLTR) have grown from $200 billion to $600 billion per year in just nine months. Such growth is suggestive of a promising future, making this AI stock one of the top ones. 44 hedge funds are long in it as of June 30. The largest shareholder is Renaissance Technologies, with a position of $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.”