HomeBusinessBetter Artificial Intelligence Stocks: Palantir vs. C3.ai

Better Artificial Intelligence Stocks: Palantir vs. C3.ai

Artificial intelligence (AI) has incredible potential to transform industries. Some have compared AI to the greatest transformational technology since the internet.

Many companies are trying to take advantage of this The secular trend of AI. Being two Palantir Technologies (NYSE:PLTR) And C3.ai (NYSE:AI). The former uses AI to extract insights from data, and the latter provides organizations with ready-made and customized AI software.

The AI ​​market is expected to grow rapidly from a projected $184 billion this year to $827 billion by 2030. Given this growth, is Palantir or C3.ai the better long-term AI investment? Here’s a look at each to come to a conclusion.

Palantir has been helping the US government analyze data since 2003, but only launched its artificial intelligence (AIP) platform in 2023. From its inception, AIP helped drive the expansion of Palantir’s non-governmental activities.

In the second quarter, Palantir saw revenue growth of 33% year over year to $307 million in its commercial division. This helped the company’s revenue reach $678 million in the second quarter, up 27% from the previous year.

Not only is Palantir’s revenue growing, but its financial health is also excellent. The company ended the second quarter with net income of $135.6 million, up from $27.9 million in 2023. It also had second quarter adjusted free cash flow (FCF) of $149 million, up from $96 million from the previous year.

AIP has successfully attracted commercial customers because the platform enables companies to go from an AI concept to real-world implementation in just a few days. This capability is no small feat, and according to Palantir CTO Shyam Sankar, “therein lies our entire opportunity in the market.”

See also  2 Beaten Growth Stocks You Might Regret Not Buying

Following on from AIP’s success, Palantir introduced a new product built on AIP called Warp Speed. This solution aims to address bottlenecks in the manufacturing industry by using AI to improve an organization’s supply chains and production processes.

If Palantir can successfully tackle this huge market, which represented nearly $3 trillion in US gross domestic product (GDP) last year, it could fundamentally transform its fortunes.

C3.ai started as an energy management company in 2009 and moved into AI software in 2019. Thanks to its roots in the energy sector, the company was able to form a joint venture with energy giant Baker Hughes to deliver AI technology to the oil and gas sector. This allowed C3.ai to capture customers such as Shell And ExxonMobil.

C3.ai’s software platform can address several situations where AI can help a business, such as fraud detection for banks. The company generated 84% of its revenue from subscriptions in its first fiscal quarter of 2025, which ended July 31. The rest came from services such as training and customer support.

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments