Palantir Technologies is the top S&P 500 stock in 2025 with shares up 82%, driven by demand for its AI platform, Artificial Intelligence Platform (AIP). The product launched in April 2023 and serves both public and private sectors, including the U.S. military.
AIP builds detailed ontologies — real-time data maps showing revenue, costs, and business variables. This helps executives simulate outcomes and make strategic decisions fast.
Palantir’s customer base is expanding quickly, especially on the commercial side, reducing reliance on government contracts. 
Still, some analysts warn Palantir’s valuation is overheated. Dan Ives predicts a trillion-dollar market cap by decade’s end. Others expect a "valuation normalization" and a potential pullback.
Meanwhile, CoreWeave is emerging as a strong contender in AI infrastructure. The company rents Nvidia GPU-powered cloud access, critical as AI spending on chips is projected to hit $6.7 trillion by 2030.
CoreWeave works with Microsoft, Amazon, Alphabet, Meta, and OpenAI — major AI spenders boosting demand for cloud infrastructure. Analysts expect CoreWeave’s revenue to triple and become profitable within two years.
Palantir currently has a $326 billion market cap, nearly four times CoreWeave’s. Yet, CoreWeave is on track to outsell Palantir in 2025.
Investors see Palantir as a software AI play. CoreWeave is betting on the future of AI hardware infrastructure, which could dominate next.
After CoreWeave’s 300% post-IPO jump, experts advise starting positions cautiously at better prices. Palantir’s growth might slow and trigger a sell-off as reality hits.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
