Comparison between Palantir and Microsoft as AI stocks, with Microsoft being a more promising option.

From Nasdaq: 2024-09-29 18:45:00

Tech companies are preparing to invest $1 trillion in expanding AI services, leading to a surge in AI stocks. Palantir Technologies (PLTR) and Microsoft (MSFT) are two key players in this market. Palantir’s commercial revenue increased by 33% in Q2, while Microsoft has invested $13 billion in OpenAI and Azure cloud services.

Palantir’s AI systems cater to government agencies, with commercial sales growing by 45%. Palantir’s advantageous position in transitioning from prototyping to production sets it apart from competitors. With an expected 47% jump in U.S. commercial sales by 2024, Palantir’s estimated total sales for 2024 could reach $2.75 billion.

Microsoft’s investments in OpenAI and Azure have positioned it as a key player in the expanding AI market. Azure now has 60,000 AI customers and continues to grow. Microsoft’s more affordable forward P/E ratio of 32 compared to Palantir’s 87, along with its access to cutting-edge AI tech, makes it a strong long-term AI stock option.

While Palantir offers growth potential, Microsoft’s lower valuation and significant investments in AI make it a more appealing AI stock. Microsoft’s position in the cloud computing market and its strategic partnerships with AI start-ups position it for future success. Investors seeking a long-term AI play may find Microsoft a more promising option than Palantir.



Read more at Nasdaq: Better AI Stock: Palantir vs. Microsoft