Which AI Stock, Figma or Palantir, Could Make You a Millionaire?

Published Date : 12/08/2025 

Both Figma and Palantir are promising AI stocks, but which one is more likely to turn a small investment into a million-dollar portfolio? This article explores the growth potential, market position, and financial health of each company to help you make an informed decision. 

Investing early in the right stocks can sometimes be highly rewarding. For example, Palantir Technologies (PLTR) went public in September 2020 with an opening share price of $10. Today, its shares trade at around $186. More recently, Figma (FIG) conducted its initial public offering (IPO) on July 31, 2025, with a share price of $33. Although the stock has been volatile, it's still worth roughly $82. It's too late to get in at the very beginning for either of these artificial intelligence (AI) stocks. But which one is more likely to make you a millionaire?

The case for Figma

One argument for why Figma could be more likely to be a millionaire-maker than Palantir is that it's much smaller. Figma's market cap of around $40 billion is only a fraction of Palantir's market cap of roughly $440 billion. Generally speaking, smaller companies have more room to grow than larger companies do. Figma's growth is already impressive. Its revenue soared 46% year over year in its latest quarter. Customers are sticking with Figma's artificial intelligence (AI)-powered product design and development software, too, as evidenced by a sky-high net dollar retention rate of 132%.

Figma's customer base includes 78% of the Forbes 2000 and 95% of the Fortune 500. We're talking about a list that features marquis companies such as Airbnb, Atlassian, DuoLingo, Microsoft, Netflix, The New York Times, and Zoom. Figma could have a massive opportunity ahead. It estimates its total addressable market is currently around $33 billion, and IDC projects that more than 1 billion new apps will be developed by 2028. Figma's 2024 sales of $749 million are a drop in the bucket, compared to this growing market.

The case for Palantir

Perhaps the most compelling argument that Palantir is more likely to make investors $1 million than Figma is that it's growing faster. The company reported year-over-year revenue growth of 48% in the second quarter of 2025. Here's another biggie: Palantir has a 'Rule of 40' score. The 'Rule of 40' is a popular rule of thumb for evaluating software-as-a-service (SaaS) companies. Its premise is that a company's revenue growth rate plus its profit margin should be 40% or higher. Palantir's 'Rule of 40' score is a sky-high 94%. This puts the company in a league of its own among software makers.

Palantir's customer count of 485, as of June 30, 2025, is well below Figma's number of customers. However, the value of Palantir's contracts with customers is much larger. In Q2 alone, Palantir closed 157 deals of at least $1 million and 42 deals of at least $10 million. The U.S. government remains Palantir's largest customer, and its government business continues to grow robustly. However, its commercial business is growing even faster. Palantir expects its commercial revenue to soar by at least 85% this year. CEO Alex Karp wrote to shareholders recently that the company's U.S. commercial business is 'the emerging core of Palantir and the seed of what an entire industry will become, perhaps the world's most dominant, in the years to come.'

And the winner is...

When all factors are considered, I think that Palantir is more likely than Figma to make you a millionaire. Palantir's opportunity appears to be larger than Figma's, in my view. That said, don't expect an investment of $10,000 in Palantir to grow to a cool $1 million. Much of the company's growth prospects are already baked into its share price and then some, with its price-to-earnings-to-growth (PEG) ratio of 4.89. If you're hoping to become a millionaire with a relatively small initial investment, you'll probably need to look elsewhere. 

Frequently Asked Questions (FAQS): 

Q: What is the current market cap of Figma and Palantir?

A: As of the latest data, Figma's market cap is around $40 billion, while Palantir's market cap is approximately $440 billion.

Q: What is the 'Rule of 40' and why is it important for SaaS companies?

A: The 'Rule of 40' is a metric used to evaluate the health of SaaS companies. It states that a company's revenue growth rate plus its profit margin should be 40% or higher. This rule helps investors assess whether a company is growing fast enough to justify its valuation.

Q: Who are some of Figma's notable customers?

A: Figma's customer base includes 78% of the Forbes 2000 and 95% of the Fortune 500, including companies like Airbnb, Atlassian, DuoLingo, Microsoft, Netflix, The New York Times, and Zoom.

Q: How much revenue did Palantir report in its latest quarter?

A: Palantir reported year-over-year revenue growth of 48% in the second quarter of 2025, indicating strong financial performance.

Q: What is the total addressable market (TAM) for Figma?

A: Figma estimates its total addressable market to be around $33 billion, with projections suggesting significant growth in the coming years. 

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