Market Watch: ASML and AMD Poised to Outpace Palantir in Valuation Race

Palantir Technologies (PLTR) has emerged as a market darling, delivering staggering returns and robust business growth. Its AI-driven software solutions for government and enterprise clients fueled a 48% year-over-year revenue surge last quarter, surpassing $1 billion. Yet the stock's meteoric rise comes at a cost—its valuation now ranks among the most inflated in the market.

Analysts warn this premium pricing may cap future gains. At a $425 billion market capitalization, Palantir trades at growth multiples that appear unsustainable compared to peers. Semiconductor giants ASML and AMD, currently valued NEAR $275 billion each, present compelling alternatives. Both companies benefit from secular tailwinds in AI infrastructure and compute demand that could propel their valuations beyond Palantir's within three years.

The divergence highlights a market bifurcation: while Palantir's technology adoption remains strong, its stock price has arguably outpaced fundamentals. Investors now weigh whether to chase the AI software leader at peak multiples or pivot to hardware enablers trading at relative discounts.