#7 - Palantir (NYSE:PLTR)
The last company on this list of AI stocks to buy for the long haul is the software company Palantir Technologies Inc. (NYSE: PLTR). Palantir’s proprietary ontology helps consumers use AI to make insightful decisions about their business.
PLTR stock is up approximately 88% in 2024. However, with a forward P/E of over 167x, many analysts believe the stock is simply too overvalued.
But you don’t have to pay that close attention to notice that Palantir is stacking win upon win. And the recent news that the U.S. government is going to expand its TITAN contract could be worth up to $1.5 billion. Now, Palantir won’t get all of this money, but it just goes to show that analysts may not be accounting for the future growth available for Palantir.
One more thing for investors to consider is that Palantir may be included in the S&P 500 index in September. That won’t shake out the retail investors who have driven the growth in PLTR stock. But as fund managers add the stock to their index funds, it’s likely to make today’s consensus price targets look far too low.
About Palantir Technologies
Palantir Technologies Inc builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. The company provides Palantir Gotham, a software platform which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform.
Read More - Current Price
- $64.33
- Consensus Rating
- Reduce
- Ratings Breakdown
- 2 Buy Ratings, 8 Hold Ratings, 6 Sell Ratings.
- Consensus Price Target
- $31.71 (50.7% Downside)
Artificial intelligence can be intimidating and even a scary thought for some investors. It's not just about adapting to change, but adapting to the speed of that change. And many bearish investors may choose to believe that AI is a fad like some said of the internet in the late 1990s. But fortunes were made then by individuals willing to invest in companies like Apple Inc. (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL), which were low-priced small-cap stocks at that time.
As with the internet, the growth of AI will come in ways that we may have difficulty imagining right now. But these companies are building that future which will come whether we want it or not.
One way that investors may want to approach this sector is through an exchange-traded fund (ETF) such as the iShares Robotics and Artificial Intelligence Multisector ETF (NYSARCA: IRBO). This fund has a low expense ratio of just 0.47% and gives you exposure to the entire AI value chain.
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