Nvidia just surpassed Apple again on Tuesday and regained the top spot in the global enterprise market value ranking. However, in another ranking that focuses on the annual stock price increases of S&P 500 index constituent stocks, Nvidia's ranking actually dropped one place.
According to industry statistics, among the companies with the largest annual increase in the S&P 500 index, Nvidia has now fallen to third place. In mid September, the stock's increase was once the highest.
So, which demon stock is so fierce?
The answer is Palantir Technologies, a data analysis software company.
On Tuesday, Palantir's stock price surged nearly 23% after the financial report was released, and the cumulative increase this year has reached 195%. This figure has exceeded Nvidia's 181% increase so far in 2024, but is still lagging behind the approximately 212% increase of leading US power provider Vistra.
Palantir was included in the S&P 500 index in September this year, while Vistra was included in May.
Interestingly, these three companies are currently entering the field of artificial intelligence in different ways. Nvidia goes without saying, Vistra fully explains what "the end of AI is electricity," while Palantir showcases the application of artificial intelligence technology in the software field. This enterprise software company, which provides services to government and commercial clients, is expected to continue accelerating its growth as more and more companies seek Palantir's AI platform to test, debug, and evaluate various AI related scenarios.
Palantir CEO Alex Karp stated in a shareholder letter on Monday, "Our business is accelerating growth, and our financial performance has exceeded expectations as we meet the firm demand of the US government and commercial clients for state-of-the-art artificial intelligence technology
Nvidia is a typical representative of the global artificial intelligence wave in recent years, as its advanced GPU is the backbone of the AI revolution. Although Nvidia and Palantir do different things and have different scales, at a time when Wall Street is skeptical about the potential of artificial intelligence to bring monetary returns, Palantir's way of obtaining economic benefits from artificial intelligence is making people compare it to Nvidia.
In the history of the company, Palantir has assisted the US military in successfully locating the leader of Al Qaeda, Osama bin Laden, by analyzing massive amounts of data and intelligence.
Palantir currently expects its revenue in 2024 to be between $2.805 billion and $2.809 billion, higher than the previously estimated $2.742 billion to $2.750 billion; It also raised its annual profit forecast range to approximately $1.05 billion to $1.06 billion, compared to the previous forecast of $966 million to $974 million. The revenue growth driven by the demand for artificial intelligence is being translated into profits, "said David Glazer, the company's Chief Financial Officer
D A. Last week, an analyst from Davidson also pointed out that compared to other companies (excluding Nvidia), Palantir is a better role model for those who want to integrate AI into their products but don't know how to do it.
With Palantir's stock price soaring this week, the company's valuation is expected to once again exceed $100 billion.
Of course, some market participants are currently cautious about Palantir's high valuation. Radio Free Mobile independent analyst Richard Windsor wrote, "Another set of good performance has driven Palantir's stock price to a new high, but this is not the kind of explosive growth reported by Nvidia, and its valuation index is three times that of Nvidia, with severe stock dilution, which means that the funds spent by investors have not received the corresponding value
Windsor added that he missed the opportunity to double due to selling early, but he is still very happy to enter a field with more reasonable value.