We recently published a list of 10 Unstoppable Growth Stocks To Buy According to Reddit. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other unstoppable growth stocks to buy according to Reddit.
What Does the Launch of DeepSeek Mean for the US Market?
Tech stocks in the US saw a decline amid DeepSeek AI concerns shortly after the market rose post Trump’s $500 billion AI investment announcement in project Stargate. The OpenAI rival is said to follow an open-source model and celebrates similar efficiency at a fraction of the cost of OpenAI. The launch of the Chinese startup has shaken the stock market in the US and to discuss the aftermath of such Sarah Kreps, Director of Cornell University’s Tech Policy Institute, joined Catalysts on Yahoo Finance on January 27, 2025.
Kreps suggested that this small startup is seen to perform in the same way these “pioneers” in the United States do. She added that the launch puts “enormous pressure” on firms in the United States and expects companies in the US to put more effort into delivering customer value to their AI investments moving forward, suggesting that competition can be “good” for these companies.
Similarly, on January 27, Matt Calkins, Founder and CEO of Appian (APPN), appeared in an interview on Yahoo Finance to discuss the implications of DeepSeek on the US market. Calkins suggested that the AI war between the two countries is going to be an asymmetric war for US and China, and any other countries planning to get involved. He also added that the things “that make China strong” differ from the elements that make the USA strong, therefore, companies in either country do not need to strive to match each other.
Calkins also believes that the DeepSeek announcement is a “wake-up call” for companies in the United States and expects more surprises to come from the rapidly changing industry. He strongly emphasized the need for a framework on a state level that protects the rights and privacy of Americans for this situation to work out and position the US for success. However, he reiterated the need to first understand the dynamics of the AI industry, the value of these AI models, and the source of data before comprehensive frameworks are established.
Overall, the AI, and technology market as a whole, is extremely disruptive and subject to rapid changes, making such surprises a part of the bigger picture. That said, let’s take a look at some stocks that have performed extremely well over the past six months and have been on the radars of the general public for their solid growth opportunities.
Our Methodology
To come up with the 10 unstoppable growth stocks to buy we sifted through important threads and picked the 25 most popular stocks. We then examined the 6-month return for each stock and picked the top 10 with the largest number of hedge fund holders as of Q3 2024.
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 intently typing code into a laptop with multiple screens in an office.
Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Funds: 43
6-month Performance as of January 27, 2025: 181.9%
Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that ranks second on our list of the unstoppable growth stocks to buy now according to Reddit. The software company specializes in software platforms for big data analytics. Earlier in December 2024, the company expanded its Army Vantage partnership with a $618.9 million contract, improving the way missions are performed using data and AI.
On January 23, analyst firm, Wedbush raised its price target on the stock from $75 to $90, keeping an outperform rating on the stock. The analyst firm has a bullish thesis on PLTR due to its artificial intelligence strategy and believes the stock is on the path to becoming the next Oracle or Salesforce. The firm also suggested that the Street is underestimating the revenue Palantir Technologies Inc. (NASDAQ:PLTR) can drive from its artificial intelligence platform over the next few years. The stock remains one of the top picks for the firm in 2025 with high hopes attached to its game-changing AI strategy.
Overall, PLTR boasts a solid growth opportunity as it shifts its entire focus to the development of AI-supported solutions for businesses. This explains why 43 hedge funds held stakes in PLTR at the end of Q3 2024.
Overall, PLTR ranks 2nd on our list of unstoppable growth stocks to buy according to Reddit. While we acknowledge the potential of PLTR to grow, our conviction lies in the belief that certain 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
