From Nasdaq: 2025-06-02 04:50:00

Artificial intelligence (AI) has driven the stock market’s gains since the recent bear market in October 2022, with generative AI breakthroughs sparking excitement for new business applications. Palantir Technologies and Alphabet (NASDAQ: PLTR, GOOG, GOOGL) have benefited from AI integration, resulting in soaring stock prices, doubling since the start of 2023.

Wall Street analysts expect Palantir to see a 20% downside over the next 12 months, with a median price target of $100. Despite strong growth fueled by U.S. corporations and improved operating margins, Palantir’s high valuation raises concerns about potential returns for investors. Alphabet, on the other hand, has a median price target of $200, with a 16% upside expected, based on 71 analysts’ views.

Palantir’s Artificial Intelligence Platform (AIP) has driven growth, particularly in the U.S. commercial sector, with revenue rising by 54% in 2024. The company’s rapid revenue growth has expanded its adjusted operating margin to 44% in Q1 2025, up from 24% in Q1 2023. Despite strong financial results, Palantir’s high valuation suggests lower-than-average returns for investors.

Alphabet faces regulatory challenges and potential divestments due to a court ruling on its search engine monopoly status. However, Google’s integration of AI features, such as AI Overviews, has boosted revenue. With additional growth drivers like YouTube and Google Cloud, Alphabet’s valuation has dropped to 18.2 times forward earnings estimates, presenting a buying opportunity for investors despite regulatory uncertainties.



Read more at Nasdaq: Palantir vs. Alphabet Stock: Wall Street Says Buy One and Sell the Other