Palantir’s AI Growth Faces Valuation Concerns as Investors Eye Alternatives
Palantir's stock has surged over the past two years, driven by its Artificial Intelligence Platform (AIP), which integrates disparate data sources to enhance AI model utility. The company reported a 48% year-over-year revenue increase to $1 billion last quarter, with U.S. commercial sales nearly doubling. Despite its operational success, Palantir's forward price-to-sales multiple of 100 times 2025 estimates raises valuation red flags.
Investors weighing Palantir's premium may find better risk-reward profiles elsewhere in tech. The article suggests two unnamed alternatives offering similar upside without the frothy multiples. Market participants are increasingly scrutinizing AI-related valuations as the sector matures.