Shares of Palantir have been on a strong upward trend in 2025, with a market cap of $448 billion. However, Alibaba and AMD are poised for even stronger revenue growth in key AI segments, with more compelling stock valuations. The two AI companies could potentially outperform Palantir by the end of 2026.

Palantir has shown impressive growth, with a Rule of 40 score of 114 due to its revenue growth of 63% and operating margin of 51%. Despite strong performance, its stock price faces challenges as it trades at high multiples compared to analyst expectations. Analysts are divided on Palantir’s future, with some predicting a step back in 2026.

Alibaba, the largest cloud infrastructure provider in China, is making great strides in AI with triple-digit AI services revenue growth. The company faces challenges in meeting demand for AI services but remains confident in its investments. With a market cap of $378 billion, Alibaba’s growth potential could surpass Palantir’s in 2026.

AMD, often considered an underdog in the GPU space, is competing well with Nvidia and expects significant growth in data center revenue and AI solutions. With strong earnings growth expectations, AMD could see its market cap of $360 billion surpass Palantir’s. The release of the Instinct MI450 series could be a catalyst for AMD’s success.

Read more at Nasdaq: Prediction: These 2 Artificial Intelligence (AI) Stocks Will Be Worth More Than Palantir by the End of 2026