The Motley Foolยท2025-09-28 08:55Group 1: Palantir Technologies - Palantir Technologies has seen a remarkable stock rally, becoming the 22nd largest company globally with a market cap of just under $426 billion [1] - The stock has jumped over 945% since the beginning of 2024, but its growth may not be solid enough to justify the high valuation [2] - In Q2 2025, Palantir's revenue increased by 48% year over year, but its price-to-sales ratio of 132 is considered too high compared to faster-growing companies [3] Group 2: Advanced Micro Devices (AMD) - AMD has a market cap of $260 billion, which is approximately 64% lower than Palantir's, but its price-to-sales ratio is significantly lower at just 9 [6] - AMD reported a 32% increase in revenue in Q2 2025, reaching $7.7 billion, with its client and gaming segment growing by 69% year over year [7] - The AI-capable PC market is expected to grow by 4.5 times by 2030, and AMD holds a 24% market share in the PC CPU market, having increased by 2.8 percentage points from the previous year [8][9] - The upcoming launch of next-generation gaming consoles in 2028 is expected to further boost AMD's revenue, as the company has historically designed custom chips for major console manufacturers [9][10] - AMD's data center business now accounts for 41% of its revenue, which increased by 14% year over year in Q2, and the company is positioned to benefit from the adoption of server CPUs and GPUs in AI data centers [11] - AMD's revenue is projected to grow at double-digit rates, potentially reaching almost $72 billion by 2030, which could lead to a market cap of $662 billion based on the technology sector's average sales multiple [13][15][16]