The current time is exciting for technology investors. Recent breakthroughs in artificial intelligence (AI) and quantum computing offer a glimpse into the coming golden age of innovation. Aeon Q (NYSE: IONQ) and Palantir Technologies (NASDAQ: PLTR) They have a great storyline – both are working to establish themselves as leaders in these new markets.
These stocks are already producing exhilarating returns. IONQ has grown by 650% since 2023, while Palantir has skyrocketed by more than 1,300%.
Where would you invest $1,000 now? Our team of analysts revealed what they believe 10 Best Stocks Buy now. Continues “
The past few years may only be the beginning. Experts believe that artificial intelligence could grow to become a multi-billion dollar industry for more than a decade. Which AI strains do you choose for the long term? Neither is perfect, but the facts ultimately reveal a clear choice.
In a sense, artificial intelligence It’s software that can do more than you’ve ever dreamed of. AI models can now think about, analyze data and even generate written content and images. Who knows what you can do in a few years? IONQ and Palantir are pushing the bleeding edge of innovation separately.
Palantir builds customer AI software applications for government and commercial applications. Use data to analyze to generate actionable insights in real time. As a result, Palantir’s AI software is highly adaptable to countless use cases. Support military missions, coordinate schedules with people, optimize supply chains, detect fraud and name them. The company is extremely profitable and has been growing since the summer of 2023, with Palantir still likely to be in an early chapter. A long story of growth.
IONQ is racing to become a major player in quantum computing. This can ultimately become important in order to unlock AI’s maximum potential. Quantum computers use quantum mechanics to generate capabilities that go far beyond today’s best supercomputers. IONQ develops quantum computers for data centers. It’s still too early. Quantum computers today are unstable and error prone. IONQ is competing to hone its technology and become one of the first companies to bring commercially practical quantum computers to the market.
It is interesting to compare these two AI strains. Because despite the persuasive performances of the past two years, both are seriously flawed.
For IONQ, investors place a lot of faith in the unknown. Frankly, quantum computing is not yet ready for the real world. Like a CEO nvidia‘s Jensen Huang and alphabet“Sundar Pichai speculates that practical quantum computing could be years away. (Huang later returned his statement.) This helps explain why IONQ generated just $43 million in revenue last year.
Quantum computing may ultimately be a major opportunity. Still, it is unclear when the market will take off, how many IONQs will be captured, or how profitable IONQ is. IONQ has a market capitalization of $6 billion, and we estimate what it is gaining for its investment.
Palantir does not have this problem. The business generated $2.87 billion in revenue last year, and has been growing faster. Palantir also exudes free cash flow and net profit. The problem with Palantir is the price that investors have to pay to own the shares. Remember, even the best companies in the world can be a poor investment if their ratings stink.
The stock’s past returns are impressive, but its epic run pushed Palantir’s valuation through the trajectory. The current price-to-selling rate of stocks (80) and forward-to-earning ratio (167) are terrible, requiring years of high octane growth or dramatic decline in stock prices of rights.
At this point, Palantir is a great business. Ionq will probably try that in the future, but the times seem to be years apart.
Palantir Stock’s rating is a little more radioactive now, but the powerful company behind it gives investors something to cooperate. So it is also a better AI stock.
That doesn’t mean investors should buy stocks today. The market has become unstable in recent weeks. If investors are eschewing risky growth and technology stocks, Palantir could be sold more vigorously for its valuation. Stocks have already fallen almost 25% from their highs.
Palantir managed to drop another 50% from here, but it’s still one of the most expensive stocks on Wall Street. So I’m not in a hurry. Plan to slowly buy as stocks decrease (or business grows) and approach a much more reasonable valuation.
Consider this before purchasing stocks at Palantir Technologies.
Motley Fool Stock Advisor The analyst team has identified what they believe 10 Best Stocks For investors to buy now…and Palantir Technologies was not one of them. The 10 stocks that have made the cut could potentially generate monster returns over the next few years.
When should you think about it? Netflix I created this list on December 17, 2004…If you invested $1,000 at the time of recommendation, There is $524,747! * Or when nvidia I created this list on April 15, 2005… If you invested $1,000 at the time of recommendation, There is $622,041! *
Now it’s worth noting Stock AdvisorThe average return rate 792% – Market-breaking outperformance compared to 153% For the S&P 500. Don’t miss out on the latest Top 10 list that you can use when participating Stock Advisor.
View 10 shares »
*Stock Advisor will return as of April 14, 2025
Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Justin Pope There is no position in any of the stocks mentioned. Motley Fool has locations for Alphabet, Nvidia and Palantir Technologies, and is recommended. To Motley’s fool Disclosure Policy.
Better Artificial Intelligence Stock: IONQ vs. Palantir Technologies Originally published by The Motley Fool
