Better Artificial Intelligence Stock: Palantir vs. Microsoft

From Nasdaq: 2024-11-10 18:30:00

Palantir Technologies (NYSE: PLTR) and Microsoft (NASDAQ: MSFT) are both benefiting from the rapid growth of the AI market. Palantir uses generative AI tools to help clients make faster decisions, while Microsoft’s Azure platform integrates OpenAI’s tools into its services.

Palantir’s stock has surged over 170% in the past year, outperforming Microsoft’s stock which rose less than 20%. Palantir aims to be the default operating system for U.S. government data, with revenue growth driven by new contracts and generative AI services.

Microsoft, with a CAGR of 14% in revenue from fiscal 2020 to 2024, is a balanced way to invest in AI’s growth. Azure’s expansion and OpenAI’s tools have boosted its services, making it a safer bet in the long run. Analysts expect revenue and EPS to grow at a 15% CAGR from fiscal 2024 to 2027.



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