The Motley Foolยท2025-06-05 08:30Core Viewpoint - The article discusses the strong performance of Palantir Technologies due to advancements in artificial intelligence (AI) and highlights two other AI stocks, Salesforce and Adobe, that are expected to outperform Palantir in the near future [1][2][3]. Palantir Technologies - Palantir has seen a remarkable stock increase of 1,630% since December 2022, with a current market cap exceeding $300 billion [2]. - The company's financial results are strong, with a year-over-year revenue growth of 39% in the first quarter and an operating margin of 44% [6]. - Despite excellent operating results, Palantir's stock is considered overvalued, trading at more than 75 times the management's revenue outlook for 2025 and 175 times EBITDA expectations for the next 12 months [7][8]. Salesforce - Salesforce is enhancing its enterprise software solutions with AI through its Agentforce platform, which has generated around $100 million in annual recurring revenue shortly after launch [9][10]. - The company expects total sales to exceed $41 billion this year, with an operating margin of 34% [10]. - Salesforce stock trades at just 6 times management's revenue guidance, with a forward P/E ratio of 23, and analysts have a median price target of $355, indicating a potential 35% upside [13]. Adobe - Adobe has integrated AI innovations into its creative and marketing software, leading to increased pricing and customer acquisition [14][15]. - The company reported $125 million in annual recurring revenue directly from AI services, expecting this to double by year-end, and $3.5 billion in AI-influenced annual recurring revenue across its portfolio [16]. - Adobe stock trades for about 7 times management's estimate for 2025 revenue, with a forward P/E below 20, and analysts have a median price target of $477.50, suggesting a 19% upside [18][19].