英语轻松读发新版了,欢迎下载、更新

Should You Forget Palantir and Buy 2 Artificial Intelligence (AI) Stocks Instead?

2025-07-29 11:30:00 英文原文

作者:Chris Neiger, The Motley Fool Tue, Jul 29, 2025, 7:30 PM 4 min read

In This Article:

  • Palantir's share price surged 480% over the past year.

  • Nvidia continues to benefit from its AI semiconductor lead.

  • A feared AI chip slowdown for Taiwan Semiconductor hasn't materialized.

  • 10 stocks we like better than Nvidia ›

Shares of Palantir Technologies (NASDAQ: PLTR) surged 480% over the past year as the artificial intelligence analytics company's sales and earnings both jumped. Palantir's services are used by the U.S. government and companies to make sense of their data and make better decisions, and the company is likely still in the early innings of the AI boom.

That's the good news. The not-so-great news is that Palantir's rapid share price gains pushed its price-to-earnings ratio up to 690. That sky-high number is solidly in the nosebleed section of any stock valuation, and then some.

While some investors may be OK with paying a hefty premium for Palantir's shares, many won't be. If you're one of them, here are two other AI stocks that are great to own instead.

A processor with the letters "AI" on it.

Image source: Getty Images.

Nvidia (NASDAQ: NVDA) is at the top of many investors' lists of AI stocks, and with good reason. Nvidia is leading the way in the AI semiconductor space and the company's processors account for an estimated 75% to 95% of all artificial intelligence semiconductors. That lead won't be overcome any time soon, giving Nvidia a significant advantage in AI processing for years to come.

What's more is that Nvidia's sales and earnings are through the roof. Data center revenue spiked 73% in the first quarter of fiscal 2026 to $39 billion and the company's non-GAAP (adjusted) earnings were up 33% from the year-ago quarter. Nvidia's management estimates revenue will climb 50% in the second quarter to $45 billion.

Nvidia stock is pricey, but it's far cheaper than Palantir's. The company's shares have a P/E ratio of about 56, which is on par with the rest of the semiconductor industry right now. And there are some solid indicators that more AI processor demand is on the way, considering that Microsoft, Meta Platforms, Amazon, and others have all said they'll spend hundreds of billions of dollars on AI data centers over the next several years.

Taiwan Semiconductor Manufacturing (NYSE: TSM), which is also called TSMC, makes the processors that many companies design. In contrast, Nvidia is a chip designer, not a fabricator.

TSMC's business has been booming thanks to the surge in AI processor demand, and the company's management says that AI revenue will double this year compared to last year's sales. Considering the company's earnings surged 61% in Q2 2025, any investor fears that artificial intelligence demand is cooling down should be put to rest.


关于《Should You Forget Palantir and Buy 2 Artificial Intelligence (AI) Stocks Instead?》的评论


暂无评论

发表评论

摘要

Palantir Technologies' share price increased by 480% over the past year due to strong AI analytics sales and earnings growth. However, its P/E ratio rose to a sky-high 690, making it expensive for many investors. Nvidia continues to dominate the AI semiconductor market with an estimated 75-95% market share and experienced a 73% revenue spike in Q1 2026. TSMC's fears of slowing AI chip demand have not materialized as its AI-related revenue is set to double this year compared to last year, reflecting continued strong earnings growth.

相关新闻