Core Viewpoint - The article discusses the high expectations built into Palantir Technologies' stock price due to its significant growth in the AI sector, while highlighting Qualcomm and Adobe as undervalued alternatives poised for growth in the coming years [1][4]. Group 1: Palantir Technologies - Palantir Technologies has seen substantial benefits from increased AI spending, helping organizations analyze large data sets [2]. - The company’s revenues have grown by 50% over the last two years, but its stock price has increased over tenfold, resulting in a market cap of 204billion[3].−Giventhehighexpectationsreflectedinitsstockprice,anyminorfinancialsetbackscouldleadtofurtherdeclinesinitsvaluation[4].Group2:Qualcomm−QualcommispositionedtosupporttheAItrenddespitenotbeingthefirstsemiconductorcompanythatcomestomindforAIapplications[5].−Thecompanyoperatestwosegments,withitsQCTchipbusinessexpectedtobenefitfromincreasedAIprocessingpowerindevices[8].−Qualcomm′sQCTsegmentsawarevenueincreaseof20230 billion [11]. Group 3: Adobe - Adobe has made significant investments in AI, but there are concerns about the impact of generative AI on its Creative Cloud applications [12]. - The company maintains strong competitive advantages, as its tools are industry standards, making it unlikely for professionals to switch to alternatives [13]. - Adobe's digital media segment experienced an 11% increase in annual recurring revenue for 2024, driven by user acquisition from its Firefly AI model [14]. - The marketing solutions business presents a substantial opportunity for Adobe, with the launch of GenStudio for Performance Marketing showing promising early responses [15]. - Adobe's stock trades for less than 22 times expected earnings for 2025, indicating significant upside potential, with a potential valuation exceeding $240 billion [16].
Palantir Technologies(PLTR) The Motley Fool·2025-03-02 10:15