We recently compiled a list of the 12 Trending AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against the other trending AI stocks.
DeepSeek may have astounded the tech world following its emergence, but not everyone seems to be a fan. In the latest news report, Reuters reported that South Korea’s industry ministry temporarily blocked access to Chinese artificial intelligence startup DeepSeek due to security concerns. The government urges caution on generative AI services, particularly calling out ministries and agencies about using AI services such as ChatGPT and DeepSeek at work.
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State-run Korea Hydro & Nuclear Power reported blocking the use of AI services including DeepSeek earlier this month. The defense ministry has done the same for its computers that are for military use, reported officials. Yonhap News Agency has further reported restricting access to DeepSeek in computers that connect to external networks. South Korea, however, isn’t the only country that despises DeepSeek for its security vulnerabilities.
BBC has also reported on the matter, stating that Australia has banned DeepSeek from all government devices and systems. The country is concerned over the security risk the Chinese artificial intelligence (AI) startup poses. Its government further insisted that the ban comes not because the startup is Chinese, but because of the “unacceptable risk” it poses to national security. The move specifically requires government entities to “prevent the use or installation of DeepSeek products, applications, and web services”, as well as remove any previously installed, on any government system or device. As a result, a wide range of workers won’t be able to use DeepSeek in the country.
Similarly, the US Navy has also banned the use of DeepSeek, as reported by CNBC last week. The Navy reportedly said that DeepSeek’s AI was not to be used “in any capacity” due to “potential security and ethical concerns associated with the model’s origin and usage.”
“We would like to bring to your attention a critical update regarding a new AI model called DeepSeek,” The memo said it’s “imperative” that team members do not use DeepSeek’s AI “for any work-related tasks or personal use.”
-The Navy’s warning to the distribution list OpNav, Operational Navy.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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).
A software engineer manipulating a vast network of code on virtual monitors.
Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On February 5, Tyler Radke from Citigroup reiterated a Hold-equivalent “Neutral” rating on the stock and raised his price target to $110 from $42 previously. The analyst has reservations about the stock, despite Palantir reporting blockbuster earnings driven by robust artificial intelligence demand. Acknowledging that Palantir’s earnings were “impressive,” Radke expressed concerns about its valuation with the stock trading at more than 500 times future earnings estimates.
“While metrics point to inflecting AI growth, we could get more constructive if PLTR showed sustainable levels of upside revisions. There was likely some non-repeatable budget flush in Q4 and now hitting softer Q1 seasonality.”
-Tyler Radke
The analyst has noted that the rise in share price for Palantir has been due to demand driven by the company’s suite of artificial intelligence (AI) products. However, the company’s updated regression implies an enterprise value-to-sales multiple of 56 times for 2026. The return profile for software companies trading above 50 times forward EV/sales “hasn’t been good.”
Overall PLTR ranks 7th on our list of the trending AI stocks on latest news and ratings. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher 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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Disclosure: None. This article is originally published at Insider Monkey.