Keithen Drury, The Motley Fool

Tue, Jun 24, 2025, 2:30 AM4 min read

• Palantir is valued among companies that are much larger than it.

• The stock has an incredibly high valuation attached to it.

• Salesforce, ASML, and AMD will likely be larger than Palantir in the near future.

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Palantir Technologies (NASDAQ: PLTR) is one of the most popular artificial intelligence (AI) stocks on the market, but it got that way by having a ton of hype baked into the stock. Currently, it sits at a $330 billion valuation; however, its revenue and profits are dramatically smaller than those of every company around it. As a result, I won't be surprised if these three companies are larger than it within the next three years.

The three stocks are Advance Micro Devices (NASDAQ: AMD), Salesforce (NYSE: CRM), and ASML (NASDAQ: ASML). All of these companies have strong growth cases but are also much larger than Palantir from a revenue and profit viewpoint. I think these three will be larger than Palantir by 2028, but there's another reason why this trio should be valued at a higher level by then as well.

Palantir is an AI-first data analytics company that gives its users actionable insights based on the information that's run through its platform. Palantir started as a government-serving entity but expanded beyond that client base to the commercial side. That transition went extremely well, with both client bases making up a significant chunk of Palantir's revenue.

Palantir has become one of the more hyped-up AI stocks, and it rose to a sky-high valuation that normally isn't seen with companies with the level of growth that it has.

Palantir's market cap of $330 billion is much larger than AMD's ($206 billion), Salesforce's ($248 billion), or ASML's ($300 billion). However, all three of these companies produce much higher revenue and profits than Palantir.

From a revenue standpoint, Palantir is about 1/10 of the size of this trio, and depending on which company it's compared to, anywhere from a fourth of the profits up to about 1/20 of the profits. So, why is Palantir valued as highly as this trio? After all, AMD, ASML, and Salesforce are all key competitors and beneficiaries of the AI arms race.

It all comes down to how much the market believes these stocks will grow over the next few years.

Palantir put up impressive growth over the past few quarters, including 39% growth in Q1 and projected growth of 38% in Q2. While Palantir has been delivering impressive growth for a bit longer than some other companies, it's not the fastest-growing business on this list.