Should You Ditch Palantir? Here Are 3 AI Stocks to Snap Up Now

Artificial Intelligence (AI) remains the most talked-about investment theme on Wall Street, and there isn't any stock that has seen performance quite like Palantir Technologies The software firm's expansion has picked up pace since introducing its exclusive AIP platform for artificial intelligence apps in mid-2023.

Consequently, Palantir Technologies has surged more than 1,900% in less than two and a half years.

Where should you put your $1,000 investment at this moment? Our analysis group has just disclosed their thoughts on what they consider to be the 10 best stocks to buy right now. Continue »

It's usually prudent to invest in successful stocks, such as Palantir's. artificial intelligence (AI) -motivated opportunities might drive expansion for the foreseeable future . However, trading at an enterprise value With a price-to-sales ratio of almost 100, Palantir's valuation has grown excessively high.

Hence, it might be prudent to set aside thoughts of investing in Palantir Technologies for the time being and look into several other top-tier AI firms offering substantial growth potential along with much more affordable valuations.

1. Nvidia

A significant and continuous investment trend is underway with corporations allocating hundreds of billions of dollars to construct data centers aimed at training and running AI models. Nvidia (NASDAQ: NVDA) Has become the go-to choice for AI processors in the industry, with certain projections estimating its market share to be around 77% in 2025.

AI chips now make up the bulk of NVIDIA's business. This might sound alarming, but it's largely due to their dominance in the data center market. investments have remained strong . The broader technology sector seems to be in a generational cycle as it lays the foundation for AI and what it could become over the coming years.

Despite its stock price soaring in recent years, Nvidia trades at a reasonable price-to-earnings (P/E) ratio of 46. Meanwhile, analysts estimate the company will grow earnings by an average of 35% annually over the long term. That's compelling value for that anticipated growth, assuming Nvidia and AI sustain their momentum.

2. Meta Platforms

One of Nvidia's biggest clients is the major social media corporation. Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg is steering the company heavily towards artificial intelligence. Meta has created and released its AI model called Llama, which has been downloaded more than one billion times. They have embedded AI technologies into their social networking applications with the aim of boosting user interaction and advertising revenue. Additionally, they market electronic devices such as VR headsets and intelligent AI spectacles.

Meta Platforms is still in the initial stages of realizing its ambitious goals for the artificial intelligence sector. The Reality Labs division, which encompasses all of Meta's virtual reality and AI initiatives, remains unprofitable. However, the company’s main operations continue to perform well and fuel expansion.

The company’s social media platforms—Facebook, Instagram, WhatsApp, and Threads—are expanding continuously. In the first quarter of 2025, total daily active users increased by 6%, reaching 3.43 billion compared to the previous year. Financial analysts predict that Meta Platforms will see an average annual earnings increase exceeding 17% over the longer term. Given this projected growth and considering the current price-to-earnings ratio of 25, investors might consider purchasing the stock as a solid investment, provided these forecasts hold true for the company’s performance.

3. Amazon

As AI applications generally operate in the cloud, they serve as a significant growth driver for cloud firms such as Amazon (NASDAQ: AMZN) The massive online retailer also runs the globe’s premier cloud computing service, known as Amazon Web Services (AWS). company's largest profit center In the first quarter of 2025, Amazon's AWS revenue increased by almost 17%, reaching $29.2 billion compared to the previous year.

These favorable conditions are expected to persist for many years ahead. According to research conducted by Roots Analysis, the public cloud sector might expand to reach $3.36 trillion by 2035, indicating an annualized growth rate of 17.5% over the coming ten years. Given its position as the industry frontrunner, Amazon stands to gain substantially from this trend.

The latest tariff issues have caused the stock price to drop from its peak levels; however, this might present a good chance for long-term investors to purchase shares. If Amazon manages to increase its earnings by an estimated 19% annually over the coming years—as experts forecast—the stock’s current Price-to-Earnings ratio of 33 could pave the way for substantial investment gains.

Don't let this second chance for a possibly profitable opportunity slip away.

Have you ever felt like you've missed out on purchasing the most profitable stocks? If so, you should definitely listen to this.

From time to time, our skilled group of analysts releases a “Double Down” stock Here's a suggestion for firms that seem poised for growth. Should you fear missing out on potential opportunities, this might be an ideal moment to purchase stocks before it becomes impossible. The data clearly supports this approach.

• Nvidia: If you had invested $1,000 when we increased our stake in 2009, you’d have $351,127 !*
• Apple: If you had invested $1,000 when we increased our stake in 2008, you’d have $40,106 !*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $642,582 !*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor , and there may not be another chance like this anytime soon.

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*Stock Advisor returns as of May 19, 2025

John Mackey, who previously served as CEO of Whole Foods Market—an entity now owned by Amazon—is part of The Motley Fool’s board of directors. Additionally, Randi Zuckerberg, formerly responsible for market development and communications at Facebook and sibling to Meta Platforms CEO Mark Zuckerberg, also sits on The Motley Fool's board. Justin Pope does not hold any shares in the stocks listed above. The Motley Fool holds positions in and recommends Amazon, Meta Platforms, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy .

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