Prediction: 2 Stocks That Will Be Worth More Than Palantir 5 Years From Now

Core Insights - Palantir Technologies has seen a significant stock price increase of over 300% in the last year, rising from under $10 to about $180, but its valuation is considered unsustainable with a price-to-sales ratio of 132, indicating potential poor returns in the next decade for its $400 billion market cap [2][9] Group 1: ASML Holding - ASML Holding is positioned to benefit from AI advancements more than Palantir, being a crucial player in the semiconductor supply chain with its lithography printing tools [4][5] - ASML's lithography equipment is essential for manufacturing advanced computer chips, with a new version costing chipmakers $400 million, highlighting its significant pricing power and backlog due to AI chip demand [5] - ASML expects to generate annual revenue between €44 billion and €60 billion ($51 billion to $70 billion) in five years, compared to Palantir's current revenue of $3.44 billion, with ASML also having a better profit margin of 35% versus Palantir's 17% [6][7] Group 2: Hermès - Hermès, a luxury goods manufacturer, is experiencing steady growth that is relatively immune to economic cycles, with products priced at $10,000 or more, showcasing significant pricing power [8] - Hermès has superb profit margins and consistent revenue growth, positioning it to outperform Palantir as an investment [9]