Prediction: These 2 Artificial Intelligence Stocks Could Be Worth More Than Palantir by 2026

Core Viewpoint - Palantir's stock has seen a dramatic increase of over 2,700% since 2023, but it is now considered drastically overvalued, potentially leading to a pullback in 2026, allowing other companies like AMD and Salesforce to surpass it [1][4][6]. Palantir's Valuation - Palantir currently has a market cap of $435 billion, with a price-to-sales ratio of 120 times and a forward earnings ratio of 254 times, indicating extremely high growth expectations that may not be sustainable [2][6]. - Despite the stock's significant rise, Palantir's revenue has only increased by 104%, suggesting that the stock price is not aligned with its financial performance [4]. Competitors: AMD - AMD has a market cap of $343 billion and is projected to have a strong growth trajectory, with a forecasted 60% compounded annual growth rate (CAGR) in data center revenue through 2030 [2][8]. - AMD's overall growth is expected to reach a 35% CAGR through 2030, making it a compelling investment option compared to Palantir [9]. - AMD's valuation is more reasonable at 11 times sales and 54 times forward earnings, positioning it as a potential larger company than Palantir by the end of 2026 if Palantir's stock falters [10]. Competitors: Salesforce - Salesforce, with a market cap of $250 billion, is the leader in customer relationship management (CRM) software but has faced challenges in revenue growth, struggling to exceed double-digit growth rates [2][11]. - Despite slower revenue growth, Salesforce has shown strong diluted earnings per share (EPS), leading to a more reasonable valuation at 22 times forward earnings, making it the cheapest option among the discussed companies [13]. - If Palantir's high expectations lead to a decline, Salesforce could potentially surpass Palantir's market cap by the end of 2026 [14].