Palantir’s P/E: A Tale of Two Stocks

Palantir Technologies has been one of the most dynamic-*and controversial*-stocks in the market for the last couple of years. Its 2,130% gain over three years? A feat so improbable, it makes the Tower of Babel look like a poorly planned real estate venture. Invest $10,000? You’d now have $223,000. A nest egg so large, it’s practically a second home in the Hamptons.

But here’s the rub: Palantir’s valuation is so absurd, it’s like paying $623 for a loaf of bread when the price tag says $1. Its trailing P/E of 623 and forward P/E of 217 are not numbers-they’re riddles wrapped in a mystery, buried under a pile of existential dread. The P/S ratio of 137? A number so high, even a medieval knight would question his armor’s worth.

I’m a believer in Palantir’s growth story, but let’s not pretend it’s a stock for the faint of heart. If you’re looking for AI stocks without the baggage of a 623 P/E, here are two alternatives that won’t make your wallet weep.

1. Advanced Micro Devices

AMD, the David to Nvidia’s Goliath, is quietly stealing the spotlight. This year, it’s up 90%-a performance so impressive, it’s like watching a underdog win the Olympics while juggling flaming torches. And this month? A deal with OpenAI to supply 6 gigawatts of GPUs? It’s like getting a standing ovation at a talent show after a solo performance.

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Wedbush’s Dan Ives called it a “huge vote of confidence.” Which is just code for, “OpenAI is betting on AMD, so maybe this isn’t a scam.” A 10% stake? It’s like getting a gold star for finally remembering your own name.

And let’s not forget: AMD’s P/E of 101 and forward P/E of 28.5? A bargain compared to Palantir’s financial gymnastics. It’s the difference between a Michelin-starred meal and a vending machine snack.

2. CoreWeave

But GPUs are only half the story. You also need the horsepower to run AI applications at scale. Enter CoreWeave, a cloud computing company that’s basically the Uber of AI infrastructure. Microsoft is its biggest client, accounting for 62% of revenue. It’s like having the entire NBA as your personal trainer.

CoreWeave’s revenue backlog? A staggering $30.1 billion, up 86% from last year. Its Q2 revenue? $1.21 billion. It’s growing so fast, it’s like watching a toddler learn to walk-unstoppable, slightly alarming, and occasionally disastrous.

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Yes, it’s not profitable yet. But its 250% gain this year and forward P/S ratio of 13? A far cry from Palantir’s 104.4. It’s the difference between a luxury car and a rental-both get you there, but one doesn’t leave you broke.

The bottom line

I still hold Palantir. It’s like a bad relationship you can’t quit. But for those who prefer their investments with less drama, AMD and CoreWeave are the BFFs of the AI world. AMD’s validated, CoreWeave’s scaling-two stocks that’ll make you feel like a financial wizard, even if you’re just following the crowd. Just don’t expect a Nobel Prize.

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2025-10-13 07:13