One of the biggest themes that helped drive the market last year was artificial intelligence (AI). The technology, which in the past was relegated to science fiction, has suddenly become mainstream. Companies, meanwhile, have been racing to become AI leaders, viewing it has a generational opportunity.
Let’s look at three stocks that are greatly benefiting from AI.
Known as one of the U.S. government’s most important vendors, Palantir Technologies (NASDAQ: PLTR) and its data gathering and analytics solutions have been used for such critical tasks as fighting terrorism and tracking COVID-19 cases. However, the company has now been able to incorporate AI into its solutions to begin helping commercial customers address their own mission-critical needs.
While many large tech companies have focused on developing the best AI models, Palantir instead has decided to focus on the applications and workflow layers of AI software to improve logic and functionality. This helps AI better carry out actions in real-life applications. Its AI platform is designed to be the operational layer of an organization, where digital assets, such as data sets and models, are then connected to their real-world counterparts, such as products or customer orders.
The company’s solutions have been seeing huge demand from commercial customers, with its U.S. commercial revenue rising 54% last quarter to $179 million, while its U.S. commercial customer count soared 77%. Meanwhile, the U.S. government, its largest customer, is also starting to embrace AI solutions.
Thus far, much of Palantir’s early success in AI has been with proof-of-concept prototype work. It has done a great job of acquiring commercial customers through its Artificial Intelligence Platform (AIP) boot camps, where it demonstrates to customers how its technology can be applied to potential use cases while providing onboarding and training. The big opportunity moving forward is moving these customers from proof of concept to production. This should help accelerate the company’s overall revenue growth, which was 30% last…
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