<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>AI stocks took a hit in 2026, creating an opportunity to pick up shares of Palantir Technologies and Oracle at a discount.</li><li>Palantir and Oracle are enjoying AI-fueled customer demand for their offerings.</li><li>Both possess downsides, such as Palantir's lofty stock valuation and Oracle's mounting debt.</li><li>10 stocks we like better than Palantir Technologies ›</li></ul>The artificial intelligence (AI) industry experienced upheaval in 2026. Wall Street soured on many AI stocks, but this creates opportunities for investors looking at the long term.Two AI businesses to consider investing in are Palantir Technologies (NASDAQ: PLTR) and Oracle (NYSE: ORCL). The former gained prominence providing data analytics to government intelligence agencies, while the latter began as a database provider that became a major AI cloud computing company.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »Palantir shares are down 20% this year through the week ending March 27. Oracle dropped nearly 30% in that time. This creates a buying opportunity, but if you had to choose between the two, here's a look at which is the better AI investment.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg1NjQ0MC9haS1pbi10aGUtY2xvdWQtZ2V0dHlpbWFnZXMtMTQyMjkyNTQ2OC0xMjAweDY0Ni1mMWNkNDkyLnBuZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="376" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg1NjQ0MC9haS1pbi10aGUtY2xvdWQtZ2V0dHlpbWFnZXMtMTQyMjkyNTQ2OC0xMjAweDY0Ni1mMWNkNDkyLnBuZyZ3PTcwMA"/>Image source: Getty Images. <h2>Palantir's AI platform</h2>Palantir launched its Artificial Intelligence Platform (AIP) in 2023, and it's been a hit, as demonstrated by the company's blistering sales growth. In the fourth quarter of 2025, Palantir posted an impressive 70% year-over-year revenue increase to $1.4 billion.The company's AI solutions boast several strengths. Its platform was built to protect sensitive information, given the needs of government agencies. It's also powerful enough to support military operations, aiding Ukraine in its war against Russia and the U.S. in the conflict with Iran.Palantir's competitive advantage lies in the proprietary ontology used by its AI models. CEO Alex Karp explained the importance, stating in a February letter to shareholders, &#34;The models must be tethered to objects in the real world, and it is that tether, that means of grounding and orientation, that we have built.&#34;However, Palantir's success has catapulted its stock to a sky-high valuation, as evidenced by its price-to-sales ratio (P/S ratio) of 82. This suggests the stock is expensive.<h2>Oracle's pros and cons</h2>Oracle's move into cloud infrastructure positioned it to become a provider of AI computing capacity. This is a lucrative new market. As businesses like OpenAI and Palantir rush to build increasingly powerful artificial intelligence, they require massive computing power. And it just so happens that Palantir is one of Oracle's cloud customers.As a result, Oracle's sales are going strong. Revenue in its fiscal Q3 2026, ended Feb. 28, rose 22% year over year to 17.2 billion, and this growth is poised to continue. Its fiscal Q3 remaining performance obligations (RPO), representing future revenue Oracle expects from its customer contracts, totaled $553 billion, a staggering 325% year-over-year increase.However, AI infrastructure is costly. Oracle had to pile up on debt to fund cloud expansion. It exited fiscal Q3 with over $130 billion in debt, and in February, announced plans to raise up to $50 billion dollars through debt and equity financing.<h2>Choosing between Palantir and Oracle</h2>With both companies producing strong AI-driven sales, how can an investor choose between them? One consideration is stock valuation. While Palantir's sales multiple of 82 is high, Oracle looks cheap by comparison.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vbWVkaWEueWNoYXJ0cy5jb20vY2hhcnRzLzdiMGU3Zjg4ODk1MDdiOGM2YWZmYTcxYjU2ZjUzNDEzLnBuZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="428" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vbWVkaWEueWNoYXJ0cy5jb20vY2hhcnRzLzdiMGU3Zjg4ODk1MDdiOGM2YWZmYTcxYjU2ZjUzNDEzLnBuZyZ3PTcwMA"/>Data by YCharts.In fact, Oracle's P/S ratio is near a low point over the past year, suggesting now is a good time to pick up shares.However, Oracle's growing debt is a concern, while Palantir sports an impressive balance sheet. At the end of 2025, Palantir's total assets were $8.9 billion compared to total liabilities of $1.4 billion and no debt.Given Palantir's stronger sales growth and financial health, it is the better AI investment over Oracle. Its share price valuation is a concern, though, so try to buy on a dip.<h2>Should you buy stock in Palantir Technologies right now?</h2> Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $501,381!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,012,581!* Now, it’s worth noting Stock Advisor’s total average return is 880% — a market-crushing outperformance compared to 178% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 31, 2026. Robert Izquierdo has positions in Oracle and Palantir Technologies. The Motley Fool has positions in and recommends Oracle and Palantir Technologies. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

PLOO

In 2026, AI stocks faced a downturn, presenting buying opportunities for Palantir Technologies and Oracle. Palantir's AI platform has seen significant sales growth, but its high valuation raises concerns. Oracle, while benefiting from strong sales and a growing AI market, is burdened by substantial debt. Investors may prefer Palantir for its financial health, despite its expensive stock. Analysts suggest considering other top stocks as alternatives to Palantir.

- In 2026, AI stocks declined, presenting investment opportunities in Palantir Technologies and Oracle at discounted prices.  
- Palantir's strong AI sales, particularly its growth in government contracts, is contrasted by its high valuation, while Oracle benefits from cloud expansion despite significant debt.  
- Overall, Palantir is viewed as the better investment due to its financial health and sales growth, despite valuation concerns.

Better Artificial Intelligence Stock: Palantir vs. Oracle