• “Magnificent Seven” with a relevant role in the field of AI
• Palantir as a new competitor for Microsoft?
• New customers, increased sales and profits, promising deals
There is still no way around artificial intelligence – hardly anything has recently moved the stock markets as much as the AI hype. In this context, the “Magnificent Seven” – Microsoft, Apple, Tesla, Alphabet, Meta, NVIDIA and Amazon – have also emerged and recorded meteoric rises. The chip giant NVIDIA, for example, was able to increase its value on the NASDAQ by an impressive 239 percent last year. So far this year it has increased by almost 80 percent (as of: closing price on May 3, 2024). Meanwhile, Microsoft is considered one of the first important companies in the AI revolution – not least thanks to a billion-dollar investment in OpenAI and thus ChatGPT.
AI competition for Microsoft & Co.
But it’s not just the “Magnificent Seven” who want to emerge as winners from the AI game; competition is also increasingly threatening from other large corporations such as Palantir. The US software provider specializes in analyzing large amounts of data and was able to win numerous new customers last year and increase its sales and profits. In 2023, Palantir also staged an impressive rally on the trading floor: the share price on the NYSE rose by over 167 percent. Since the beginning of the year, it has increased by almost 36 percent (as of: closing price on May 3, 2024).
Palantir offers four different software suites: Apollo, Gotham, Foundry and the Artifivial Intelligence Platform (AIP). Customers include Airbus, Lowe’s, the British healthcare system, the US Army and other well-known companies and governments.
Significant potential
All of Palantir’s platforms are powered by artificial intelligence. The tech group primarily supports companies in processing data that is stored in different systems, as The Motley Fool explains. Due to the mature technology, Palantir can also charge high prices for its software. While average revenue per customer over the last 12 months was $55 million for its top 20 customers, Palantir also closed over 100 new deals in Q4 – 21 of which were valued at at least $10 million The Motley Fool further emphasized. The US group also recently announced a partnership with Oracle.
Palantir’s technologies can be used in a wide variety of industries, which certainly increases the potential. “In our view, Palantir is well positioned to benefit from the long-term AI trend and volatile geopolitics,” wallstreetONLINE quoted Brian White, analyst at Monness, from a research note. DNB Asset Management, the asset manager of Norway’s largest bank, also recently appeared bullish. According to an SEC filing, while he sold Apple shares as well as Tesla and Microsoft shares in the first quarter, DNB Asset Management increased its stake in Palantir. 429,300 additional shares in the tech group are now held by the Norwegian bank.
Microsoft vs Palantir
In contrast to Microsoft, whose product range extends from personal computing to cloud infrastructure, social media and games to software development, Palantir has so far been a pure software developer. It is questionable whether it can keep up with one of the most diversified companies in the world, which has been extremely successful for years. One thing is clear: many want to be part of the AI revolution and expand their dominance. According to some experts, Palantir could certainly compete with Microsoft in the area of artificial intelligence due to its initiatives in this area, but on the whole Palantir will probably remain in the shadow of the innovative tech giant.
Editorial team finanzen.net
Image source: PopTika / Shutterstock.com, Michael Vi / Shutterstock.com