AMD and Palantir Poised to Ride AI Growth Wave, Though Risks Remain
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AMD and Palantir are positioned to benefit from growing AI demand. AMD makes AI chips while Palantir offers an AI software platform.
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AMD estimates the AI chip market could reach $400B by 2027. It expects over $3.5B in AI chip revenue by 2024.
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Palantir's AI software platform is driving increased customers and revenue. Its commercial customer count grew 44% YoY in Q4.
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AMD trades at 12x forward sales while Palantir is more expensive at 25x. However, Palantir is growing faster.
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Both stocks could continue growing from AI tailwinds. AMD is cheaper while Palantir has more growth potential but also more risk.