Goldman Sachs’ Best Phase 2 AI Stocks: Top 24 High Conviction AI Stocks

2. Palantir Technologies Inc. (NYSE:PLTR)

Year To Date Share Price Gain: 162.42%

Number of Hedge Fund Investors in Q2 2024: 44

Palantir Technologies Inc. (NYSE:PLTR) is a software company that caters to the needs of governments and the private sector. Its government business enables users to consolidate intelligence and derive insights, while the commercial arm provides it with important exposure to the AI industry. When compared to most other software firms, Palantir Technologies Inc. (NYSE:PLTR) benefits from the fact that its engineers work directly with customers for software implementation. This allows for efficient AI implementations, and the results are already evident in Palantir Technologies Inc. (NYSE:PLTR)’s financials. The firm’s US commercial revenue grew by a whopping 70% in the second quarter, and it closed the three month period by adding 96 contracts worth $1 million or more and an impressive 27 deals that were worth more than $10 million. Palantir Technologies Inc. (NYSE:PLTR)’s inclusion in the S&P 500 has also helped the shares.

mentioned Palantir Technologies Inc. (NYSE:PLTR) in its Q1 2024 investor letter. Here is what the fund said:

“The top contributor to return for the quarter was Palantir Technologies. 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.”