Prediction: 2 AI Stocks Will Be Worth More Than Palantir Technologies in 5 Years

Core Insights - Palantir Technologies stock has nearly doubled over the past year, reaching a market value of $360 billion, with expectations that Shopify and AppLovin could surpass this figure within five years [1] Group 1: Shopify - Shopify develops commerce software that allows merchants to manage sales across various platforms, including physical and digital stores [3] - The company has been recognized by Gartner as a leader in digital commerce, highlighting its rapid innovation and enterprise-grade reliability [4] - Shopify is well-positioned to leverage artificial intelligence, having co-developed the Universal Commerce Protocol with Google, which integrates merchant product catalogs into AI agents [5] - The introduction of AI features has led to significant automation in store building and marketing, with the AI assistant Sidekick generating thousands of applications and automations [6] - Shopify reported a 30% increase in sales to $11.5 billion in 2025, with operating income rising 37% to $1.5 billion [7] - Wall Street expects Shopify's earnings to grow at 28% annually through 2027, potentially increasing its market value to $362 billion while reducing its valuation to 56 times earnings [8] - Currently valued at $172 billion, Shopify's stock would need to increase by 110% to reach a market value of $361 billion, implying an annual return of about 16% [9] Group 2: AppLovin - AppLovin develops ad tech software, initially focusing on mobile gaming but has recently expanded into web-based advertising with a self-service platform [10] - The company differentiates itself with its machine learning ad engine, Axon, which excels in targeting campaigns and is supported by its mediation platform, Max [11] - AppLovin delivers a 45% higher return on ad spending compared to Meta Platforms, indicating a durable competitive advantage [12] - The company reported a 70% increase in advertising revenue to $5.4 billion in 2025, with net income from continuing operations rising 116% to $3.4 billion [13] - Wall Street anticipates AppLovin's earnings will grow at 44% annually through 2027, with a potential market value of $365 billion even at a conservative growth rate of 30% [14]