We recently compiled a list of the 15 AI News Making Waves Right Now. In this article, we are going to take a look at where Palantir Technologies Inc. (NYSE:PLTR) stands against the other AI stocks that are making waves right now.
With Donald Trump having won the elections, it seems Elon Musk is going to be a powerful force in the administration. After all, X CEO has played an outsized role in his comeback, contributing millions to his campaign, serving as policy advisor, and even using his social media platform as a Make America Great Again (MAGA) advocacy platform.
Now that his efforts have come to fruition Max Tegmark, a leading scientist, who has previously worked with the world’s richest person says Musk’s influence could lead to tougher safety standards for artificial intelligence, as reported by The Guardian.
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Tegmark says Musk’s backing of a failed AI bill demonstrated that Musk is still worried about the repercussions of uncontrolled AI development. The SB 1047 bill in California required companies to stress-test large AI models before releasing them.
Having frequently warned that such an unrestrained development can be catastrophic for humanity, Musk was one of the 30,000 others who had signed a letter calling for a pause on the development of advanced AI technology last year.
According to Tegmark, Musk could convince Trump to introduce standards that prevent the growth of artificial general intelligence (AGI), a term used for AI systems that match or surpass human levels of intelligence.
“I do think that if Elon manages to get Trump’s ear on AI issues we’re more likely to get some form of safety standards, something that prevents AGI. He might help Trump understand that an AGI race is a suicide race.”
– Tegmark, a professor specializing in AI at the Massachusetts Institute of Technology.
Before Trump won the elections, Musk had predicted the development of artificial intelligence that would be smarter than the smartest human being by next year or by 2026.
“If you define AGI (artificial general intelligence) as smarter than the smartest human, I think it’s probably next year, within two years”.
– Elon Musk when asked about the timeline for the development of AGI.
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. (NYSE:PLTR)
Market Capitalization: $139.43 billion
Palantir Technologies Inc. (NYSE:PLTR) provides data-driven solutions with its AI Platform (AIP) for testing, debugging code, and evaluating AI scenarios.
On November 18, investor Hataf Capital gave Palantir Technologies Inc. (NYSE:PLTR) a “Sell” rating, warning investors that the current valuation assumes flawless future execution. With a high forward P/E ratio of 158x and an EV/Sales multiple of 46x, he claims that the stock is overpriced and points to market euphoria. The heavy retail presence is also a point of concern, leading to higher volatility and sell-offs in case sentiment shifts. Previously, Monness analyst Brian White also reiterated a Sell rating on the stock with a price target of $18. The analyst contends that Palantir is well positioned to benefit from AI but the stock’s valuation is lofty, revenue recognition from government-related contracts has been uneven, and execution has been “spotty.”
Overall PLTR ranks 5th on our list of the AI stocks that are making waves right now. 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.
