Investors should consider Meta Platforms (META) and Palantir Technologies (PLTR) due to strong growth in AI market

From Nasdaq: 2024-08-07 11:00:14

The artificial intelligence (AI) market is thriving, with businesses integrating AI technologies to improve efficiency and customer experiences, driving demand for AI solutions. Despite recent market sell-off, tech giants Meta Platforms (META) and Palantir Technologies (PLTR) have seen substantial growth. META’s stock has risen 41.8% this year, outperforming the Nasdaq Composite’s gain of 9%. Trading at 23 times forward 2024 earnings, META remains a compelling AI stock. Palantir (PLTR) is valued at $59.2 billion, with its stock rising 57.3% year-to-date. Government contracts are a major revenue source, but expansion into the commercial sector is crucial for long-term growth. PLTR trades at 74 times forward earnings for 2024, with analysts predicting significant earnings growth in the coming years. Wall Street rates META as a “strong buy,” with a mean price target of $570.38, representing a 15.4% upside. For PLTR, Wall Street rates it as a “hold,” with a high target price of $38, indicating a potential 42.9% upside over the next 12 months.



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