The Motley Fool·2026-01-10 10:52Core Viewpoint - Palantir Technologies is recognized for its success in the AI software sector, but it is predicted that Alphabet and Nvidia will surpass Palantir's market cap by the end of 2026 [2][3]. Company Summaries Palantir Technologies - Current market cap is approximately $423 billion, with a forward price-to-earnings (P/E) ratio of 178.6, indicating a high valuation [6][12]. - Achieved a Rule of 40 score of 114%, showcasing strong performance metrics [7]. - Projected quarter-over-quarter sales growth of 12.7% at the high end of its guidance range [10]. Alphabet - Market cap is around $4 trillion, with a forward P/E ratio of 28.2, making it relatively cheaper compared to Palantir [8][12]. - Google Cloud is a significant growth area, integrating generative AI across its products, and is the fastest-growing among major cloud service platforms [7][9]. - Major customers are opting for Google's Tensor Processing Units (TPUs) for AI applications, indicating strong competitive positioning [9]. Nvidia - Market cap is approximately $4.5 trillion, with a forward P/E ratio of 24.5, which is also more attractive than Palantir's valuation [11][12]. - Dominates the AI chip market and has growth opportunities in self-driving cars, digital twins, and robotics [10]. - Expected sales growth of 14% sequentially in Q4 2025, outpacing Palantir's projected growth [10].