AI Software Stocks Palantir and Snowflake See Growth Potential Despite Lingering Valuation Gaps
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Palantir Technologies is an AI software provider whose stock price has tripled in the past year but remains 38% below its 2021 highs. It has strong government business and growth potential in private sector.
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Snowflake provides data warehousing and analytics tools to train AI systems. Its stock price is down 44% from its peak despite tailwinds from AI demand. It reports earnings soon.
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The stock market is surging better than expected on economic data and earnings, signaling a potential bull market. Some stocks remain far below past valuation highs.
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Palantir is demonstrating economies of scale with revenue increasing and operating losses decreasing year-over-year. It has big upside potential.
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Snowflake expects 30%+ growth over the next 5 years as it rolls out new AI-focused services, presenting an opportunity to buy its stock at a discount.