Core Viewpoint - Palantir Technologies has gained significant attention with a stock increase of nearly 140% in 2025, following a 340% rise in the previous year, but there are three AI stocks that may present better investment opportunities in 2026 [1][2]. Group 1: Alphabet - Alphabet, the parent company of Google, offers a comprehensive range of AI solutions, positioning it as a strong competitor in 2026 [4]. - Google Cloud is the fastest-growing among major cloud service providers and is favored by AI start-ups, with nearly all AI "unicorns" utilizing its services [4]. - Alphabet's Gemini 3.0 Pro is recognized as the top large language model, and the company is making strides in the AI chip market with its Tensor Processing Units (TPUs) [6]. Group 2: Micron Technology - Micron Technology is a key player in the high-bandwidth memory (HBM) market, being one of only three global suppliers and the only U.S.-based manufacturer [7]. - The functionality of Palantir's AI software relies on powerful chips, which in turn depend on high-bandwidth, low-latency memory, suggesting Micron's critical role in the AI ecosystem [8]. - Micron's forward price-to-earnings multiple is significantly lower at 9.2 compared to Palantir's 181.8, indicating a more attractive valuation despite Palantir's faster earnings growth [11]. Group 3: Nvidia - Nvidia is recognized as a leader in AI, with its GPUs being the most powerful for AI processing, making it a strong competitor against Palantir [12]. - Both Nvidia and Palantir reported similar revenue growth rates, with Palantir at 63% and Nvidia at 62% year-over-year in Q3 2025 [12][14]. - Nvidia's quarter-over-quarter revenue growth was 22%, surpassing Palantir's 18%, and its guidance suggests a projected revenue increase of 14% in Q4, compared to Palantir's 12.5% [14][15].