We recently published a list of the 12 Best AI Stocks to Invest in According to Reddit. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other AI stocks to invest in according to Reddit.
Jensen Huang had previously estimated that practical quantum computing would be 15 to 30 years away, but he recently revised this timeline to 5 to 15 years. This shift reflected the company’s growing interest in quantum, which is likely influenced by recent relevant milestones in the tech sector, particularly the MAG7. These advancements focus on error correction and reducing noise in quantum chips, which is crucial for scaling quantum computers effectively. Jack Hidary, SandboxAQ CEO, joined CNBC’s ‘Power Lunch’ on March 20 to discuss his takeaways from these advancements. Hidary emphasized that the future lies in integrating GPUs with quantum computing rather than choosing one over the other.
Jack Hidary’s perspective on AI focuses on its transformative impact and the shift from consumer-focused applications to business-driven innovations. The conversation on CNBC highlighted that while technologies like flying cars and supersonic air travel have long been discussed without becoming adopted or profitable, AI is rapidly advancing and is poised to deliver tangible results. Over the past two years, consumer AI tools like ChatGPT have dominated attention, which users to generate essays, emails, and summaries with simple prompts. However, Hidary emphasized that the next phase of AI development will center on B2B applications, which he believes will drive profound changes across industries. According to him, B2B AI has the potential to revolutionize sectors such as pharmaceuticals by enabling the development of new medicines and diagnostics. In energy, AI can help optimize hydrocarbon value chains and create higher-value products. In automotive manufacturing, AI is being used not only for autonomous driving but also for lightweight vehicles and improving product designs.
Hidary stressed that this shift toward B2B AI represents a significant economic impact, as it addresses 80% of GDP compared to the limited scope of consumer AI. He views this transition as a pivotal moment for AI’s integration into critical industries, which promises substantial advancements in technology and economic growth in the coming years. Through these developments, Hidary envisions AI becoming a cornerstone of innovation across multiple domains, reshaping how businesses operate and deliver value.
Our Methodology
We first sifted through relevant threads to compile a list of the top AI stocks. We then selected the 12 AI stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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).
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Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 64
Palantir Technologies Inc. (NASDAQ:PLTR) specializes in AI-powered software platforms for data analysis and operational decision-making. Its solutions, which include Palantir Gotham, Foundry, and the AI Platform, utilize advanced AI and ML to uncover hidden patterns in complex datasets and enable real-time responses.
The company’s AI Platform (AIP) facilitates deploying LLMs into enterprise workflows. The company’s Q4 2024 revenue hit $828 million, which was up 36% year-over-year. The full-year revenue reached $2.87 billion, which was a 29% improvement. AIP adoption is surging, especially in the US commercial sector. Q4 US commercial revenue grew 64% year-over-year to $214 million. The company’s enterprise autonomy focus automates complex processes, like reducing bank back-office tasks from five days to three minutes.
On March 18, Jefferies analysts reiterated their Underperform rating for the company with a price target of $60. Despite being impressed by the ROI case studies presented at the company’s AI Platform customer event, which showcased the transformative impact of its products, Jefferies maintains its Underperform stance.
Palantir Technologies Inc.’s (NASDAQ:PLTR) strong Q3 results, increased revenue guidance which was driven by its AI platform, and potential government partnerships contributed positively to Alger Mid Cap Focus Fund’s performance. It stated the following (NASDAQ:PLTR) in its Q4 2024 investor letter:
“Palantir Technologies Inc. (NASDAQ:PLTR) builds advanced platforms for data integration, management, and security, enabling interactive, AI-assisted analysis for its users. Its core offerings include Palantir Gotham, designed for government clients, and Palantir Foundry, tailored for commercial customers. Originally focused on U.S. intelligence agencies, Palantir has expanded into defense contracts with western governments and entered the commercial market in 2016. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal third quarter operating results, along with management raising its full year 2024 revenue guidance. Management noted that the recent launch of its AI platform (AIP), which leverages generative AI to optimize business operations, has driven significant growth and investor interest. Additionally, we believe Palantir could be a key partner for the U.S. government’s new Department of Government Efficiency (DOGE), as its AI-driven platforms are ideally suited to help identify inefficiencies, allocate resources effectively, and achieve cost reductions.”
Overall, PLTR ranks 2nd on our list of the best AI stocks to invest in according to Reddit. As we acknowledge the growth potential of PLTR, our conviction lies in the belief that AI stocks hold great promise for delivering high 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.
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Disclosure: None. This article is originally published at Insider Monkey.
