Billionaires Are Buying 2 Artificial Intelligence (AI) Stocks That Wall Street Analysts Say Can Soar Up to 240%

Group 1: Palantir Technologies - Palantir is expected to become a $1 trillion company within three years, indicating a 240% upside from its current market value of $294 billion [1] - The company has shifted focus from bespoke data analytics for the U.S. intelligence community to modular software platforms for commercial and government sectors, with core products Gotham and Foundry [3] - In 2023, Palantir launched an Artificial Intelligence Platform (AIP) that integrates generative AI into data analytics workflows, recognized by Forrester Research as a technology leader in AI and machine learning [4] - In Q1, Palantir's customer count rose 39% to 769, average spend per customer increased 24%, and revenue grew 39% to $884 million, with non-GAAP earnings jumping 62% to $0.13 per diluted share [5][6] - Wall Street estimates adjusted earnings will grow at 31% annually through 2026, leading to a current valuation of 270 times earnings [6] Group 2: Upstart - Upstart's lending platform utilizes AI to assess credit risk more accurately than traditional methods, benefiting from a network effect that enhances its machine learning models [8] - The company reported strong Q1 results, with loan originations more than doubling, revenue increasing 67% to $2.1 billion, and non-GAAP net income rising to $0.30 per diluted share from a loss of $0.31 in the same quarter last year [9] - Despite strong performance, Upstart's stock declined post-earnings due to investor concerns about the lending environment and potential economic recession [10] - Wall Street anticipates adjusted earnings growth of 195% annually through 2026, making the current valuation of 140 times earnings appear reasonable [11] - Upstart-powered loans have outperformed the two-year Treasury yield by an average of 8 percentage points over the last eight quarters, indicating strong demand potential in a $3 trillion addressable market [12]