We recently published a list of 10 Best Stocks to Buy and Hold For 2 Years. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other best stocks to buy and hold for 2 years.
Will The Tech Stocks Continue to Rally?
On March 27, CNBC reported that the stocks dipped on Wednesday, led by the technology sector. The S&P 500 dipped around 1.12%, followed by the Dow Jones, which fell by 132.71 points. More notably, the technology-dominated NASDAQ dropped by 2.40% closing at 17,899.01 points. The drop in the stock market was further aggravated by the White House’s announcement of new tariffs on auto imports.
To talk about the future of technology and artificial intelligence Doug Clinton, Intelligent Alpha founder, joined CNBC for an interview on March 29. He mentioned that it has been more than a month now that the big technology names, especially artificial intelligence companies, are not performing so well. However, despite the recent dip, Clinton maintained his bullish sentiment for the sector. He pointed out that if we zoom out of the current situation and look at the sector from two to three years from today, we will still see AI stocks rally and large capital expenditure bills. Clinton pointed out that if you are a believer in AI trade it is important to remember that the market has had more than two years of absolutely no turbulence. This period of stability started from the end of 2022 to the beginning of 2025. Clinton categorized the current dip as the first real challenge for the AI trade. Referencing history, he pointed to the Dot Com era, when the Dot Com trade faced its first real challenge. The turbulence took 200 days to reach a new NASDAQ high back then. He clarified that this does not mean that the current turbulence will last 6 months, however, if someone believes in the AI trade then they need to be patient through the dip.
READ ALSO: 10 Best Stocks to Buy and Hold For 3 Years and 12 High Growth Non-Tech Stocks That Are Profitable in 2025.
While talking about the valuations, Clinton highlighted that the question is about the kind of risks an investor wants to take during the trade. He noted that investors can choose to trade during the turbulence by exiting the market at high times, however, the risk is that the AI stocks can rise 20% to 30% in no time, making it difficult for investors to get back in. Clinton pointed out that he is looking at this trade from a two to three years lens. He believes that this will give him enough exposure and will also reduce the risk of missing out on the bigger picture.
Our Methodology
To compile the list of 10 best stocks to buy and hold for 2 years we sifted through financial media reports. From these sources, we shortlisted stocks with more than 20% sales growth over the past 3 years. Next, we ranked these stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey’s Q4 2024 database.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A software engineer intently typing code into a laptop with multiple screens in an office.
Palantir Technologies Inc. (NASDAQ:PLTR)
3-Years Sales Growth: 22.95%
Number of Hedge Fund Holders: 64
Palantir Technologies Inc. (NASDAQ:PLTR) is a United States-based software technology company that specializes in big data analytics and artificial intelligence. The company has developed software platforms that help integrate, analyze, and secure data decision-making for various industries. Some of its key platforms include Palantir Gotham, Palantir Foundry, Palantir Apollo, and more.
On March 14, Palantir Technologies Inc. (NASDAQ:PLTR) announced its partnership with R1, which is a leader in revenue cycle management for healthcare. The partnership aims to launch R37, which is an AI lab being developed to revolutionize healthcare financial performance by automating the healthcare reimbursement processes. Moreover, during the fiscal fourth quarter of 2024, Palantir Technologies Inc. (NASDAQ:PLTR) grew its United States revenue by 52% year-over-year to reach $588 million. The growth was driven by the US commercial segment which improved 64% during the same time. Notably, the company closed the quarter with $803 million in US commercial contract value, reflecting a 134% increase year-over-year. It is one of the best stocks to buy and hold for 2 years.
ClearBridge Growth Strategy stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q4 2024 investor letter:
“To promote balance, manage risk and augment the portfolio’s growth characteristics, we continued to take profits in some of our more established, larger holdings to seed new purchases. We believe that the arms race and value unlock from AI will provide a multiyear tailwind to a number of companies in our coverage. To maintain exposure to this theme, we used some of our profit taking in Broadcom to initiate new positions in AI-levered names AppLovin and Palantir Technologies Inc. (NASDAQ:PLTR).
Palantir is a software-as-a-service provider with an AI-powered operating system that connects data to existing customer applications. Palantir’s platform acts as a hub to improve business outcomes across government and commercial end markets, allowing users to synthesize diverse data sources into actionable insights in real time. The company is highly profitable and growing rapidly at scale with 80%+ gross margins. Given the stock’s more elevated valuation we are being mindful of position size.”
Overall, PLTR ranks 9th on our list of best stocks to buy and hold for 2 years. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
