Key Takeaways
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Shares of Palantir Technologies rose Tuesday after Ark Capital said software companies could have more room to capitalize on the AI boom.
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An Ark executive indicated that data analytics and software companies like Palantir are poised to take AI market share from the mega-capitalization tech giants.
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Palantir shares are up more than 140% this year after Tuesday’s earnings.
Shares of data analytics software company Palantir Technologies (PLTR) were the biggest gainers in the S&P 500 on Tuesday, after asset manager Ark Invest highlighted software as an area with more room to capitalize on artificial intelligence (AI) trends.
In an interview with CNBC, Rahul Bhushan, director of Ark Invest Europe, said data analytics and software companies like Palantir are poised to capture market share from mega-capitalization technology companies like Microsoft.MSFT), Amazon (AMZN), and Alphabet (GOOGL), whose cloud computing platforms have been a focal point in the emerging AI boom.
More ‘asymmetric opportunities’ in software
According to Bhushan, hardware and infrastructure are responsible for 80% of the value built over the past two and a half years as investors poured money into shares of AI-related companies. Ark Invest “is finding a lot more asymmetric opportunities these days” with companies operating further down the “AI stack” – including those providing software-as-a-service and platform-as-a-service products – Bhushan said.
Data analytics providers like Palantir can provide customized data and AI services tailored to the needs of specific customers, Bhushan said.
Shares of Palantir rose more than 6% on Tuesday, putting them up about 140% in 2024.
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