The Motley Fool·2025-12-08 01:45Core Insights - The generative AI market is experiencing rapid growth, significantly benefiting companies like Palantir and Innodata [1][2] Company Overview - Palantir operates two main platforms: Gotham for government agencies and Foundry for commercial clients, focusing on data aggregation to enhance decision-making [4] - Innodata transitioned from a slow-growth data analytics company to a provider of microservices for AI data preparation, addressing inefficiencies in data handling for AI projects [5] Growth Metrics - Palantir's revenue grew at a CAGR of 27% from $1.1 billion in 2020 to $2.9 billion in 2024, achieving profitability in 2023 and doubling its GAAP net income in 2024 [6][9] - Innodata's revenue increased at a CAGR of 31% from $58 million in 2020 to $170 million in 2024, also turning profitable on a GAAP basis in 2024 [9][10] Future Revenue Projections - Analysts project Palantir's revenue to grow at a CAGR of 44% from 2024 to 2027, potentially reaching $8.5 billion, and $14.7 billion by 2030 if it maintains a 20% growth rate thereafter [13] - Innodata's revenue is expected to rise at a CAGR of 36% from 2024 to 2026, reaching $313 million, and could hit $649 million by 2030 with a subsequent 20% growth rate [14] Investment Considerations - Despite Palantir's rapid growth, its high market cap of $407 billion results in a valuation of 93 times projected sales, which may limit short-term gains [13] - Innodata, with a market cap of $1.9 billion and a valuation of eight times this year's sales, presents a more reasonable investment opportunity [14][15]