Should You Forget Palantir and Buy These 2 Artificial Intelligence (AI) Stocks Instead?

Group 1: Palantir Technologies - Palantir Technologies has been one of the best-performing stocks in 2024 and early 2025, but its valuation is extreme, trading at a forward price-to-sales (P/S) multiple of 52 times 2025 analyst revenue estimates [1] - The company experienced a 36% revenue growth last quarter, driven by a 64% increase in U.S. commercial revenue, focusing on AI application and workflow layers [2] - Palantir's largest customer is the U.S. government, which accounted for over 40% of its revenue in the fourth quarter, facing budget cuts that pose a risk to the company's revenue [3] Group 2: Salesforce - Salesforce is a leader in customer relationship management (CRM) software and has expanded into automation, analytics, and employee communication through acquisitions [5] - The company aims to lead in agentic AI with its Agentforce solution, which allows customers to build and customize AI agents using no-code and low-code tools [6][7] - Agentforce has gained significant traction with 5,000 deals, including 3,000 paying deals, and is priced at $2 per conversation, presenting a substantial revenue opportunity [8] - The stock is reasonably priced, trading at a forward P/S multiple under 7 and a forward P/E ratio of 26 [9] Group 3: SentinelOne - SentinelOne is a fast-growing AI-powered cybersecurity company focused on endpoint security, with its main offering being the Singularity Platform [10][11] - The company has been gaining competitive wins against CrowdStrike and has seen success with its Purple AI solution, which aids in hunting complex security threats [12][13] - A significant catalyst for SentinelOne is its partnership with Lenovo, which will ship PCs with the Singularity Platform, presenting a major growth opportunity [14] - The stock is attractively priced, trading at a P/E ratio of under 5 times fiscal 2026 analyst estimates [15]