The Motley Fool·2025-11-23 01:13Core Insights - Investing in leading technology companies, particularly those involved in artificial intelligence (AI), is expected to yield significant long-term rewards as the world transitions to a digital economy [1] Group 1: Palantir Technologies - Palantir Technologies is benefiting from the adoption of AI by companies to enhance operational efficiency, expanding its software platforms beyond U.S. defense to Fortune 500 companies [2] - The company closed 204 deals last quarter, with 53 valued over $10 million, marking its best quarter for large contract values; U.S. commercial revenue has more than doubled year over year in Q3 [3] - Management has raised revenue guidance for 2025, expecting a 53% increase, and continues to show strong growth in free cash flow, supporting its high valuation [5] - Analyst Dan Ives projects Palantir's market cap will rise from $392 billion to $1 trillion in the coming years, driven by significant cost savings for organizations [6] Group 2: Alphabet (Google) - Alphabet is capitalizing on the migration of major companies to cloud computing services, positioning itself as a leading player in the AI revolution [7] - The stock has increased by 55% this year, with Q3 revenue growing 16% year over year to $102 billion, driven by AI enhancements across its services [8] - Google Cloud revenue grew 34% year over year, with a backlog of $155 billion, indicating its potential as a major revenue contributor in the future [10] - Alphabet's robust AI infrastructure, including data centers and proprietary AI models, positions it favorably in an AI-driven economy, supported by a capital spending budget exceeding $90 billion [12]