We recently published a list of Mag7 and Beyond: Top 10 AI News Updates and Ratings. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other top AI news updates and ratings.
According to a study presented at a European Central Bank conference, companies that manage to survive the upheaval caused by the adoption of artificial intelligence will eventually leverage AI to help them thrive in the longer run. Using data from the U.S. Census Bureau and surveys covering the period between 2017 and 2021, authors of the study found that companies that had adopted AI early on in the manufacturing sector saw their productivity drop after they replaced human workers with robots.
These findings are undoubtedly against the notion that technology, particularly AI, makes work more productive. However, Kristina McElheran, one of the authors of the paper, highlighted how there is a lot of pain in the short run. This pain, particularly the drop in productivity, has been due to the interference of AI with manufacturers’ established practices, such as keeping low inventories. Over time, these firms begin to outperform in all areas, including sales, productivity, and employment, as noted in the study.
READ ALSO: 10 AI Stocks Dominating the News This Week and 9 Trending AI Stocks Making Headlines Today.
While traditional companies are rushing to adopt AI in their operations, artificial intelligence companies such as OpenAI are in turn racing to advance AI research and enhance their tools. Last Monday, the company said it would it would raise $40 billion in a new funding round led by SoftBank Group at a $300 billion valuation. While the firm has agreed to fund OpenAI with $10 billion in mid-April and an additional $30 billion in December, it has done so on the condition that OpenAI will transition to for-profit by the end of the year.
In the case that OpenAI’s restructuring fails, the tech investment group’s investment will drop to $20 billion. With the firm having closed a $6.6 billion funding round in October, the new funding will nearly double the valuation of the AI startup.
“OpenAI has very ambitious plans on many fronts and needs a lot of capital to achieve these goals. The list of investors wanting to support that scope has shrunk and may be largely limited to Soft Bank, which itself may not have the necessary capital.”
– D.A. Davidson & Co analyst Gil Luria.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A software engineer manipulating a vast network of code on virtual monitors.
Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 63
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On April 1, Daiwa initiated coverage of the stock with a “Neutral” rating and $90 price target. With generative AI inference software taking hold at an accelerated pace, the firm believes that Palantir (NASDAQ:PLTR) has “remarkably achieved success” in applying the technology to manufacturing. However, there are concerns regarding the sustainability of the stock due to its “excessively high valuations.”
Overall, PLTR ranks 9th on our list of top AI news updates and ratings. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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.
