We recently compiled a list of the 15 AI Stocks Taking Wall Street by Storm. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against the other AI stocks.
Artificial intelligence continues to achieve remarkable breakthroughs, yet its latest contribution might come as a surprise to many. According to a report by CNBC, AI can solve one of the biggest problems facing the USA: its skyrocketing fiscal deficit. According to three economists from the Brookings Institution, artificial intelligence could prove a positive “critical shock” for the country’s fiscal health.
READ NOW: 15 Buzzing AI Stocks Making Headlines and 15 AI Stocks to Watch: News and Analyst Ratings
The Center on Regulation and Markets at Brookings released a working paper last month stating that under the most optimistic scenario, AI could reduce the annual U.S. budget deficit by as much as 1.5% of gross domestic product by 2044. This would lower annual budget deficits by roughly one-fifth at the end of the 20 years.
“The use of AI presents the rare — possibly unique — opportunity to expand access to health care information and services while simultaneously reducing the burden on the conventional health care system”.
– Paper’s authors, Ben Harris, Neil Mehotra and Eric So.
While adopting AI in healthcare is optimistic, Ajay Agrawal, a professor at the University of Toronto’s Rotman School of Management, reveals how economists’ outlook on AI and healthcare is “a mix of enthusiasm and despair”.
“Enthusiasm because there’s probably no sector that stands to benefit more from AI than health care. … But there’s friction due to regulation, due to incentives — because of the way things are structured and how people are paid for things — and friction due to the associated risks and liabilities”.
-Agrawal said.
In other news, CNBC reported that OpenAI has allowed its employees to sell about $1.5 billion worth of shares in a new tender offer to SoftBank. Current and former OpenAI employees will be able to cash out their shares this way, while the Japanese tech conglomerate will be able to get a larger slice of the pie of the AI startup. The tender offer follows the persistence of SoftBank founder Masayoshi Son after he made a $500 million investment in OpenAI’s recent funding round, also reflecting his growing interest in AI.
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.
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 manipulating a vast network of code on virtual monitors.
Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of AI systems. Palantir Technologies Inc. (NASDAQ:PLTR) is one of 2024’s best-performing AI stocks. On November 26, the company began trading on the NASDAQ exchange, reinforcing the company’s image as a strong force in the AI industry. This is because the NASDAQ is mostly affiliated with the tech sector. Following the shift, Bank of America analyst Mariana Perez Mora has raised the price target for the AI darling from $50 to a street-high of $75 and maintained a “Buy” rating on the stock.
Overall PLTR ranks 12th on our list of the AI stocks taking Wall Street by storm. 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 timeframe. 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.