The S&P 500 has experienced a remarkable bull run over the past 28 months, significantly driven by advancements in the artificial intelligence (AI) sector. This technology has sparked investor enthusiasm due to its potential to transform nearly every industry. Palantir Technologies (PLTR), a company aiding government and business entities in data analysis, has greatly benefited from this trend. Its Artificial Intelligence Platform (AIP) has accelerated growth, particularly among commercial clients, with revenues rising 50% over two years. However, Palantir’s stock price surged more than tenfold in the same period, resulting in a $204 billion market cap and a lofty valuation. Given the high expectations embedded in its stock price, even minor financial setbacks could lead to declines. Meanwhile, Qualcomm and Adobe are positioned to potentially surpass Palantir’s value by 2026. Qualcomm, known for its wireless communication patents and Snapdragon processors, could see increased demand for AI-enabled devices. Trading at 14.3-times forward earnings, it presents a bargain with significant upside potential. Adobe, despite concerns over generative AI, maintains strong competitive advantages with its Creative Cloud and marketing solutions. With a forward P/E below its historical average, Adobe also shows substantial growth potential. Both stocks could exceed Palantir’s valuation by 2026. — news from The Motley Fool
