Must-See: Jim Cramer’s 10 Best Stock Picks for Investors Right Now

6. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Investors: 44

Jim Cramer highlighted that Citi noted Palantir Technologies Inc. (NYSE:PLTR) as one of the priciest companies in the software sector but remained optimistic about its artificial intelligence initiatives. Despite this, Cramer described Palantir Technologies Inc. (NYSE:PLTR) as somewhat opaque or hard to fully understand. However, Palantir Technologies Inc. (NYSE:PLTR)’s recent addition to the S&P 500 has led to a significant boost, with shares rising more than 15%.

“Citi pointed out that Palantir is one of the most expensive names in software but remained bullish on its AI push. To me, the whole company is one big black box. Palantir’s inclusion into the S&P 500 this week has been good for more than a 15% jump in shares.”

Palantir Technologies Inc. (NYSE:PLTR) offers a strong investment opportunity due to its impressive financial performance, growth driven by AI, and strategic market positioning. In Q2 2024, Palantir Technologies Inc. (NYSE:PLTR) reported a 27% increase in revenue year-over-year, reaching $678 million, and earned $134 million in net income, marking its fourth consecutive profitable quarter. Palantir Technologies Inc. (NYSE:PLTR) saw a 55% rise in U.S. commercial revenue, driven by high demand for its Foundry software and AI solutions.

Palantir Technologies Inc. (NYSE:PLTR)’s Artificial Intelligence Platform (AIP) has been a major growth driver, prompting the company to raise its annual revenue forecast to $2.74–$2.75 billion. Its diverse revenue sources, including commercial and government contracts, reduce reliance on any single sector. Palantir Technologies Inc. (NYSE:PLTR)’s recent addition to the S&P 500, which boosted its stock price by 12%, is likely to attract institutional investors and increase market confidence.

Furthermore, its partnership with Microsoft (NASDAQ:MSFT)’s Azure enhances its AI and cloud capabilities, particularly in national security. Despite its high valuation, Palantir Technologies Inc. (NYSE:PLTR)’s innovative growth and strong financials suggest a positive long-term outlook for the stock.