--- title: "3 Artificial Intelligence (AI) Stocks That Are Hands-Down Better Picks Than Palantir Right Now" description: "Three AI stocks are recommended as better picks than Palantir Technologies. Alphabet is highlighted for its lower price-to-earnings ratio and strong growth potential in AI. Meta Platforms is noted for" type: "news" locale: "en" url: "https://longbridge.com/en/news/248283694.md" published_at: "2025-07-13T08:30:04.000Z" --- # 3 Artificial Intelligence (AI) Stocks That Are Hands-Down Better Picks Than Palantir Right Now > Three AI stocks are recommended as better picks than Palantir Technologies. Alphabet is highlighted for its lower price-to-earnings ratio and strong growth potential in AI. Meta Platforms is noted for its vast user base and innovative AI tools for advertisers. Nvidia is praised for its rapid revenue growth and leading position in AI hardware, suggesting it may outperform Palantir in the long run. Overall, these stocks present more attractive valuations and growth prospects compared to Palantir. What's the hottest stock in the **S&P 500** (SNPINDEX: ^GSPC) right now? That's easy: It's **Palantir Technologies** (PLTR -0.33%). Shares of the artificial intelligence (AI) and data analytics software maker have skyrocketed nearly 90% year to date. Should you jump on the Palantir bandwagon? I don't think so. Here are three AI stocks that are hands-down better picks than Palantir right now, in my opinion. Image source: Getty Images. ## 1\. Alphabet Google parent **Alphabet** (GOOG 1.47%) (GOOGL 1.46%) looks like an absolute steal compared to Palantir. While Palantir's forward price-to-earnings ratio is a jaw-dropping 256.4, Alphabet's shares trade at only 18.7 times forward earnings. Sure, Palantir's revenue and earnings are growing more quickly than Alphabet's. However, Alphabet is no slouch when it comes to growth, with the company's first-quarter profits soaring 46% year over year. Importantly, humongous growth is already baked into Palantir's share price. That's not nearly as much the case with Alphabet. Its price/earnings-to-growth (PEG) ratio, which is based on analysts' five-year earnings growth projections, is a not-too-shabby 1.33. Alphabet is well positioned to benefit from the rapidly increasing adoption of AI. Its Google Cloud unit is the fastest-growing among the big three cloud service providers. Integration of generative AI into Google Search is boosting user satisfaction and search usage. And the company's Waymo business is the leader in AI-powered autonomous ride-hailing. What about the regulatory threats to Alphabet? They shouldn't be ignored. The company has lost two antitrust cases over the last 12 months. However, the story isn't over on this front, with Alphabet appealing the adverse rulings. I think a bet on this AI stock is smarter than a bet against it. ## 2\. Meta Platforms **Meta Platforms** (META -1.34%) also offers investors a much more attractive valuation than Palantir. Shares of the social media giant trade at 29 times forward earnings. Ordinarily, that would seem expensive. But it's dirt cheap compared to Palantir. While Palantir competes against other software companies to win contracts, Meta doesn't have to try very hard to attract advertisers. A whopping 3.43 billion people on average use the company's Facebook, Instagram, Messenger, and WhatsApp apps daily. When you have that huge of an audience, advertisers come running. However, Meta is harnessing AI to encourage those advertisers to run even faster. It's developing AI tools that will create an entire marketing campaign based on advertisers' goals. The company is increasing ad conversion rates by using AI to improve ad recommendations. Meta is also using AI to help creators develop content, which should attract more users -- and ultimately more advertising revenue. Maybe the most exciting AI-related growth opportunity for Meta, though, is in smart glasses. The company has already racked up a big win with its Ray-Ban Meta AI glasses. That partnership is going so well that Meta recently invested $3.5 billion in Ray-Ban maker **EssilorLuxottica**. ## 3\. Nvidia **Nvidia** (NVDA 0.53%) was on the outs with investors for a while, but that's no longer the case. Over the last three months, Nvidia's gains aren't too far behind Palantir's. But I think Nvidia has more room to run than Palantir does. Importantly, Nvidia's top line is growing faster than Palantir's. In the first quarter of 2025, the graphics processing unit (GPU) maker reported year-over-year revenue growth of 69%. Palantir's revenue increased by 39% in its Q1. And while Nvidia isn't cheap by any stretch of the imagination, the stock is a bargain compared to Palantir. That's true even when growth prospects are factored into the equation. Nvidia's PEG ratio of 2.02 is less than half Palantir's PEG ratio of 4.41. Will Nvidia's growth rate slow? Of course. However, the company's GPUs remain the gold standard in training and deploying AI models. Nvidia continues to invest heavily in research and development, with more powerful chips coming out each year. I suspect this AI stock will deliver higher returns over the next five years than Palantir will. ### Related Stocks - [META.US - Meta Platforms](https://longbridge.com/en/quote/META.US.md) - [GOOGL.US - Alphabet](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US - Alphabet - C](https://longbridge.com/en/quote/GOOG.US.md) - [NVDA.US - NVIDIA](https://longbridge.com/en/quote/NVDA.US.md) - [NVDL.US - GraniteShares 2x Long NVDA Daily ETF](https://longbridge.com/en/quote/NVDL.US.md) - [07788.HK - XL2CSOPNVDA](https://longbridge.com/en/quote/07788.HK.md) - [07388.HK - XI2CSOPNVDA](https://longbridge.com/en/quote/07388.HK.md) - [NVDY.US - YieldMax NVDA Option Income Strategy ETF](https://longbridge.com/en/quote/NVDY.US.md) - [NVDD.US - Direxion Daily NVDA Bear 1X ETF](https://longbridge.com/en/quote/NVDD.US.md) - [NVDX.US - T-Rex 2X Long NVIDIA Daily Target ETF](https://longbridge.com/en/quote/NVDX.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | AI 债务泡沫初现端倪？分析师警告：Alphabet 发行百年期债券或为市场 “见顶” 信号 | Alphabet 首次发行 10 亿英镑百年期债券，策略师警示，在信贷利差历史低位、AI 需求不确定及技术变革加速背景下，此举是市场过度乐观及 AI 泡沫积聚的典型信号。本次发行是其 200 亿美元多币种融资计划一部分。 | [Link](https://longbridge.com/en/news/275752138.md) | | 姚顺宇谷歌首秀，Gemini 新模型刷爆 SOTA：人类仅剩 7 人捍卫碳基编程 | 谷歌推出 Gemini 3 Deep Think 模型，取得 3455 Elo 分数，位列全球第 8，超越以往最高分 2727。该模型在 ARC-AGI-2 基准测试中得分 84.6%，刷新 SOTA，远超 Claude Opus 4.6 | [Link](https://longbridge.com/en/news/275891427.md) | | 科技 IPO 预期升温，但华尔街的主战场已转向债市？ | 尽管 SpaceX、OpenAI 等明星公司 IPO 前景备受关注，美国科技资本市场的重心已实质性转向债务融资。为支撑 AI 基建，全球科技债发行规模预计今年逼近 1 万亿美元，Alphabet、Oracle 等巨头密集发债，Meta、亚马 | [Link](https://longbridge.com/en/news/275770702.md) | | OpenClaw 之父爆猛料：Meta 和 OpenAI 跪着抢人，小扎亲自求收购 | 在一场重磅播客访谈中，OpenClaw 之父 Peter Steinberger 透露，Meta 的扎克伯格和 OpenAI 的 Sam Altman 都在积极拉拢他，甚至扎克伯格亲自表示对 OpenClaw 的赞赏。两大科技巨头同时争抢人 | [Link](https://longbridge.com/en/news/275962731.md) | | 报道：英伟达或放宽 HBM4 规格要求，因三星、SK 海力士面临产能和良率限制 | 英伟达或被迫放宽 HBM4 技术规格，在采购顶级芯片同时引入低配版本，以确保 Rubin 平台量产。三星虽领跑认证，但良率仅 60%，SK 海力士亦在 11Gbps 性能达标上遇阻。“双轨采购” 已成定局，供应稳定性优先于极致性能。能否在放 | [Link](https://longbridge.com/en/news/275866330.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.