From Nasdaq: 2024-11-09 10:09:32

Enterprises are investing heavily in AI-powered software for automation and data-driven decision-making. The enterprise AI market is expected to grow at a 37.6% annual rate between 2025 and 2030, according to Grand View Research. Palantir Technologies (PLTR) and Microsoft (MSFT) are set to benefit from this trend, with Palantir stock up 230% this year and Microsoft up 77% since acquiring OpenAI.

Analysts predict Microsoft stock will continue to rise, with a median price target of $500 per share, implying an 18% upside. In contrast, Palantir has a median price target of $38 per share, signaling a 30% downside potential. Despite the industry’s positive outlook, Wall Street is more optimistic about Microsoft’s future performance.

Palantir is experiencing rapid growth in its commercial customer base and revenue. Its adjusted operating margin has expanded to 38%, and it continues to develop innovative software platforms like Gotham, Foundry, Apollo, and AIP. However, Palantir’s stock is deemed expensive with a high enterprise value-to-sales multiple, posing a challenge for potential investors.

Microsoft is capitalizing on AI through Azure and Copilot, driving strong revenue growth. Azure has become a top cloud platform for AI developers, with revenue accelerating by 33% year over year. Copilot is integrated into Github and Microsoft 365, attracting enterprise customers and enhancing software development capabilities. Microsoft’s stock is considered attractive with a relatively low enterprise value-to-sales multiple and strong growth prospects.

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Read more at Nasdaq: Palantir Stock vs. Microsoft Stock: Wall Street Says Only 1 Will Head Higher From Here