Better Artificial Intelligence Stock: AT&T vs. Palantir Technologies
From Yahoo Finance: 2025-05-24 16:00:00
AT&T is assisting companies in connecting their AI devices and enabling edge computing artificial intelligence services. Palantir’s AI analytics services are tapping into a $1.7 trillion market. Palantir is considered the better AI stock but comes with a premium price. AT&T’s telecom infrastructure is crucial for advancing AI services, including 5G networks for AI-powered tech. Palantir sells AI-powered analytics services with a total addressable market of $1.4 trillion. AT&T’s sales rose 2% in the first quarter, while Palantir’s revenue surged 39% with adjusted earnings up 62%. Palantir is profitable and raised its sales outlook for the year. While Palantir is growing faster, it has a high price-to-earnings ratio of 546. If considering buying, investors may want to wait for a price dip or start with a small position. The Motley Fool Stock Advisor team did not include Palantir in their top 10 stock picks. Stock Advisor has a total average return of 957%, outperforming the S&P 500. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any mentioned stocks. The Motley Fool has positions in and recommends Alphabet, Microsoft, Nvidia, and Palantir Technologies.
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