From Yahoo Finance: 2025-05-29 08:25:00

Fred Alger Management released its investor letter for the “Alger Mid Cap Focus Fund” for Q1 2025, noting increased volatility in U.S. equities due to shifting policies and the rise of advanced AI models from China. The Fund’s Class A shares underperformed the Russell Midcap Growth, prompting a reevaluation of U.S. tech firms’ high capital expenditures.

In Q1 2025, the Alger Mid Cap Focus Fund highlighted Palantir Technologies Inc. (NASDAQ:PLTR), a software company developing platforms for the intelligence community. Palantir’s stock had a one-month return of 6.51% and gained 469.54% over the last 52 weeks, closing at $123.76 per share on May 28, 2025, with a market cap of $292.062 billion.

Palantir Technologies Inc. (NASDAQ:PLTR) builds platforms for data integration, management, and security, reporting strong fiscal fourth-quarter results with revenues surpassing estimates. Palantir’s fiscal 2025 revenue outlook was raised due to high demand for its Artificial Intelligence Platform (AIP), driving a rise in the company’s share price during the quarter.

Despite its potential, Palantir Technologies Inc. (NASDAQ:PLTR) is not among the 30 most popular stocks among hedge funds. While 77 hedge fund portfolios held PLTR at the end of Q1 2025, Insider Monkey suggests that AI stocks offer greater promise for higher returns. Insider Monkey recommends an undervalued AI stock poised for massive gains as an alternative investment option.

Read more: Strong Results Boosted Palantir Technologies’ (PLTR) Performance in Q1