Is Artificial Intelligence (AI) Stock Palantir Technologies in a Bubble? We Just Got Our Answer...
Palantir is pushing boundaries in more ways than one.
Putting aside the exceptional volatility we've witnessed on Wall Street since the beginning of April, the can't-miss trend over the last two and a half years has unquestionably been the evolution of artificial intelligence (AI).
In its simplest form, AI empowers software and systems with the ability to reason and act on their own. This capacity to make split-second decisions without human oversight, as well as evolve to (potentially) learn new skills or jobs, gives this technology a truly jaw-dropping addressable market. In Sizing the Prize, PwC pegged this market potential at $15.7 trillion, globally, by the turn of the decade.
When most investors think of the AI revolution, Nvidia (NASDAQ: NVDA) is probably the first company that comes to mind. In less than two years, Nvidia went from being a fringe leader in the tech industry, with a $360 billion market cap, to the greatest thing since sliced bread, with a valuation that easily topped $3 trillion. Nvidia's Hopper (H100) graphics processing units (GPUs) and successor Blackwell GPU architecture rapidly became the preferred hardware in Al-accelerated data centers.
