Core Viewpoint - Palantir Technologies' stock is considered overdue for a correction despite its significant valuation increase, with predictions that two rising AI stocks, Alibaba and Advanced Micro Devices, could surpass Palantir in value by next year [1][2]. Group 1: Palantir Technologies - Palantir's stock has surged over 2,790% since the beginning of 2023, leading to a market capitalization of $441 billion [1]. - The company's price-to-earnings (P/E) ratio exceeds 615, indicating that its business fundamentals do not support its current stock valuation [2]. Group 2: Alibaba Group - Alibaba Group, with a market cap of approximately $409 billion, is positioned to potentially surpass Palantir due to its growth trajectory [3]. - The company has a P/E ratio of just under 21 and has experienced significant growth in AI-related product sales, which have increased in the triple digits for eight consecutive quarters [4]. - Alibaba is actively developing AI features in partnership with Apple and is working on its own AI chip and chatbot, contributing to its stock more than doubling in value this year [5]. Group 3: Advanced Micro Devices (AMD) - AMD has a market cap of around $370 billion and its stock price has risen over 88% this year, driven by its relationship with OpenAI [6]. - The company reported net revenue of $15.1 billion for the first half of the year, a 34% increase from the same period last year, indicating a significant improvement in growth [8]. - Although AMD's P/E ratio is high at 134, its price-to-earnings growth multiple is under 1.0, suggesting it may be a better investment when considering long-term growth projections [9].