Should You Forget Palantir and Buy These 2 Tech Stocks Instead?

Palantir Technologies - Palantir was the best-performing stock in the S&P 500 last year, driven by momentum in its AI platform and its focus on workflow and application layers of AI [1] - The company is transitioning customers from proof of concept to production, indicating a significant growth opportunity [1] - Palantir's stock is trading at a forward P/S ratio of 40x for fiscal 2025, more than double the peak SaaS multiples from a few years ago [2] - Executives, including the CEO and CTO, have been aggressively selling shares in recent months [2] Nvidia - Nvidia has been a major beneficiary of AI, with its GPUs becoming the backbone of AI infrastructure, leading to a 94% revenue growth last quarter [4] - The stock trades at a forward P/E ratio of under 31x and a PEG ratio of approximately 0.96, indicating an attractive valuation [5] - Nvidia is poised to benefit from the increasing demand for GPUs as AI models require exponentially more computing power [6] - Meta's Llama 4 model is being trained on 160,000 GPUs, and xAI's Grok 4 on 200,000 GPUs, with future models potentially requiring clusters of 1 million GPUs [7] - Nvidia's CUDA software platform and AI-specific microlibraries give it a competitive edge in the AI infrastructure space [8] Salesforce - Salesforce is trading at 7.7x next year's analyst estimates, making it an attractively priced alternative to Palantir [9] - The company is focusing on agentic AI with its Agentforce solution, which is considered the next step beyond generative AI [10] - Agentforce AI agents can perform complex tasks autonomously, with applications in retail and customer service [11] - The product costs $2 per conversation, and Salesforce has closed 200 deals since its October launch, with thousands more in the pipeline [12] - Salesforce forecasts deploying 1 billion Agentforce AI agents by the end of fiscal 2026 and has already released Agentforce 2.0 with new features [13] - Despite slower growth compared to Palantir, Salesforce is at the start of a significant AI opportunity [14]