--- title: "Should You Forget Palantir and Buy These 2 Artificial Intelligence (AI) Stocks Instead?" description: "The article discusses the potential of artificial intelligence (AI) to transform the global economy, estimating a $15.7 trillion increase over five years. It critiques Palantir Technologies for its hi" type: "news" locale: "en" url: "https://longbridge.com/en/news/256883873.md" published_at: "2025-09-11T09:19:46.000Z" --- # Should You Forget Palantir and Buy These 2 Artificial Intelligence (AI) Stocks Instead? > The article discusses the potential of artificial intelligence (AI) to transform the global economy, estimating a $15.7 trillion increase over five years. It critiques Palantir Technologies for its high valuation, suggesting it is too expensive to buy now. Instead, it recommends Nvidia for its leadership in AI hardware and software, and Alphabet for its strong position in AI research and cloud infrastructure. Both companies are seen as better long-term investments compared to Palantir, which is priced for perfection despite its growth potential. Artificial intelligence (AI) has the potential to transform the global economy. PwC estimates it could add up to $15.7 trillion over the next five years. Few AI companies have captured the attention of investors quite like **Palantir Technologies** (PLTR 2.70%). Strong double-digit growth in both sales and earnings powered a huge stock rally, but that rally has also pushed its valuation to extremes. Even after a recent pullback, Palantir stock trades at more than 500 times earnings and about 112 times sales. Those numbers are hard to justify. In my view, Palantir stock is just too expensive. I wouldn't buy it until shares trade at a valuation connected to reality. Here are three AI stocks still worth buying instead. ## 1\. The reigning AI champ **Nvidia** (NVDA 3.85%) remains the clear leader in AI. Its advanced graphics processing units (GPUs) are the backbone of nearly every model and application on the market, supported by one of the largest capital expenditure cycles in history. *The Financial Times* recently reported that around $3 trillion will be spent on data centers in the coming years. Obviously, not all of that is going to go to Nvidia, but a good chunk will. At the moment, its Blackwell chips are miles ahead of the competition. While **Advanced Micro Devices'** next generation of chips will narrow the gap, Nvidia's current update cycle means that Blackwell's successor, Rubin, will be here soon enough. The company's incredible success also means that it has the resources -- in both money and personnel -- to maintain its technical leadership. But Nvidia's real moat isn't just its hardware. The company's CUDA software platform, which allows GPUs to perform tasks far beyond the graphics rendering they were originally made for, is a sort of foundation on which AI software is built. CUDA is so deeply embedded in AI engineering that switching from Nvidia's ecosystem would require companies to overhaul major parts of their software stacks and replace or retrain engineers -- a very costly process. The strength of this moat is part of what allows Nvidia to charge premium prices and maintain sky-high margins. It's hard to see a future in which AI is successful and Nvidia is not, and although its stock is far from cheap, its premium valuation is justified. Image source: Getty Images. ## 2\. The undervalued AI pioneer **Alphabet** (GOOG -0.12%) (GOOGL -0.15%) has been a pioneer in AI for well over a decade. Its Google Brain division, which grew out of the DeepMind acquisition nearly 15 years ago, helped lay the foundation for modern generative AI. The company stumbled with its early push into consumer-facing large language models (LLMs), falling behind OpenAI's ChatGPT and taking a hit to its reputation with investors. But a lot has changed since then, and in many ways, Google has regained its technical edge. Research and development remain its strong suit, and it's highly likely Alphabet will stay at the forefront of AI and whatever follows it. As a hyperscaler, Google Cloud provides the infrastructure that actually powers AI. It has access to one of the largest and most valuable data troves in the world -- critical for training and improving AI systems. Its products are already deeply embedded in the lives of consumers and business operations across the globe, giving it a natural pathway to integrate AI directly into services people already use effectively. Despite all this, Alphabet stock remains one of the cheaper options in big tech. ## Palantir won't outrun its valuation Palantir is a successful company and proof positive that AI can drive real value for the companies that use it in the right way. It will continue to grow both its top and bottom lines rapidly for the foreseeable future, but it's priced for perfection, not just a high level of success. Nvidia and Alphabet, on the other hand, are solid companies with incredible cash flows and wide moats whose stocks are priced more in line with reality. I see them as AI stocks to hold for the long term. ### Related Stocks - [NVDA.US - NVIDIA](https://longbridge.com/en/quote/NVDA.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) - [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) - [NVDQ.US - T-Rex 2X Inverse NVIDIA Daily Target ETF](https://longbridge.com/en/quote/NVDQ.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 软件股遭遇 2010 年来最大做空潮，高盛惊呼：市场 “无处可藏”！ | 十年最猛烈做空潮席卷美国软件股，摩根士丹利数据显示空头规模创 2010 年以来新高，市场陷入 “先卖后问” 的恐慌。AI 取代白领的担忧引发行业震荡，防御性板块加速跑赢，科技七巨头（Mag 7）亦显颓势。高盛交易主管 Callahan 表示 | [Link](https://longbridge.com/en/news/275859482.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) | | 三星高管：内存需求将持续到 2027 年，HBM4 客户反馈 “非常满意” | 三星电子芯片部门首席技术官表示，受人工智能推动的强劲需求影响，公司预计内存芯片的强劲需求将在今年持续并延续至明年。他特别指出，客户对三星下一代高带宽内存芯片 HBM4 的反馈” 非常满意”。此前有报道称，三星电子将在农历新年假期后率先启动全 | [Link](https://longbridge.com/en/news/275547909.md) | | 反超三星、利润率盖过台积电：SK 海力士是如何问鼎 AI 存储领域 “隐形霸主” 的？ | SK 海力士过去 12 个月市值飙升 340%，已从债权人控制的 “僵尸公司” 逆袭为 AI 产业链定价者。其凭借 HBM 先发优势，在 AI 需求爆发的浪潮下，深度绑定英伟达与微软，拿下全球过半 HBM 份额；市占率超越三星，利润率超越台 | [Link](https://longbridge.com/en/news/275576275.md) | | 英伟达被撬墙角：OpenAI 首次发布 Cerebras 芯片支持模型 | OpenAI 周四发布的 GPT-5.3-Codex-Spark 专为实时编码设计，是 OpenAI 最新代码自动化软件 Codex 的精简版，也是 OpenAI 上月与 Cerebras 签署超 100 亿美元协议后的首个成果。OpenA | [Link](https://longbridge.com/en/news/275817804.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.