AMD and Adobe predicted to surpass Palantir's market value

Palantir Technologies has been a top artificial intelligence (AI) stock on Wall Street, but its popularity has led to a significant drop. The stock is down about 30% from its highest point. This trend might continue, allowing two competitors, Advanced Micro Devices (AMD) and Adobe, to surpass Palantir's market value by the end of the year. Palantir is known for its AI-driven data analytics software, serving both government and commercial clients worldwide. It has secured important contracts that help generate steady income. In contrast, AMD plays a crucial role in the AI sector by supplying essential components like graphics processing units (GPUs) for data centers. Although AMD competes with Nvidia, it is still growing and offers a strong alternative. Adobe is a leader in graphics design software. Even though there are concerns about free AI image generation tools, Adobe quickly adjusted by introducing its own version called Firefly. The company continues to report solid growth despite the competition. While investors have been eager to invest in Palantir, they are more cautious with AMD and Adobe, even though both are performing well. Currently, Palantir's market value is around $200 billion. AMD is valued at around $172 billion and Adobe at about $169 billion. However, both AMD and Adobe generate more profits than Palantir, and there is speculation that the market will adjust the valuations. For Palantir to match Adobe's profit levels, it would need years of steady revenue growth. This situation raises questions about why Palantir is valued higher despite its current performance. Looking ahead to 2025, analysts expect growth rates for Palantir to slow, while AMD and Adobe are well-positioned to continue expanding. Given their solid fundamentals and growth potential, it seems likely that AMD and Adobe could be more valuable than Palantir in the near future.