Palantir Stock Is Interesting, but Here's What I'd Buy Instead

Core Insights - Palantir Technologies has established itself as a key player in the artificial intelligence software sector, with its Artificial Intelligence Platform (AIP) becoming the leading operating system for organizations aiming to leverage AI for solving critical problems [1] Revenue Growth - The company has experienced significant revenue growth, with a 70% year-over-year increase last quarter, marking the tenth consecutive quarter of accelerating revenue growth [2] - In Q2 2023, Palantir's revenue growth was only 13%, indicating that the introduction of AIP has been transformative for the company [2] Market Position and Valuation - Despite the potential for Palantir to grow into one of the largest AI companies, its stock is currently trading at a high forward price-to-sales (P/S) ratio of 45 times based on 2026 estimates, suggesting that other smaller AI stocks may offer more upside [3] Competitive Landscape - UiPath is positioning its Maestro platform as an orchestration layer for AI agents, similar to Palantir's AIP, while leveraging its background in robotic process automation (RPA) [4] - The RPA business, although seemingly at risk from AI, remains relevant due to the cost-effectiveness of bots compared to AI agents, providing a foundation for UiPath's Maestro platform [5] - UiPath's platform aims to manage and coordinate AI agents from various vendors, which is expected to be a significant growth driver as AI agents become more prevalent [5]