AI Stock Showdown: Palantir vs. C3.ai

Published Date: 15/06/2024

Two AI software stocks with divergent fortunes in the past year, but which one is the better bet?

The demand for artificial intelligence (AI) software is expected to take off remarkably in the long run as organizations and governments across the globe are deploying this technology for various applications. Not surprisingly, S&P Global Market Intelligence expects the size of the generative AI software market to grow at an annual rate of 58% through 2028, generating $52 billion in annual revenue.

Palantir Technologies and C3.ai are two companies through which investors can capitalize on the fast-growing AI software market. However, it is worth noting that both stocks have enjoyed divergent fortunes on the market in the past year. While shares of Palantir have posted impressive gains of 54%, C3.ai stock has dropped 15% in the past year.

FAQs:

Q: What is the growth rate of the generative AI software market?

A: The size of the generative AI software market is expected to grow at an annual rate of 58% through 2028

Q: How has Palantir's revenue grown in the past year?

A: Palantir's revenue has increased 21% year over year to $634 million

Q: What is C3.ai's revenue growth rate?

A: C3.ai's revenue growth has been accelerating for the past five consecutive quarters, with a 20% year-over-year increase in revenue to $86.6 million

Q: Which company has a higher price-to-sales ratio?

A: Palantir has a higher price-to-sales ratio of 23 compared to C3.ai's 11.5

Q: What is the expected earnings growth rate of Palantir and C3.ai over the next five years?

A: Palantir's earnings are expected to grow at a CAGR of 85% over the next five years, while C3.ai's earnings are expected to grow at a CAGR of 50%

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