Palantir Technologies (NASDAQ: PLTR) has experienced a significant stock surge, with gains of 495% over the past year. The company has a current market valuation of $338 billion but faces scrutiny as its stock trades at 623 times earnings and 114 times sales. Analysts project a 12-month price target of $110, indicating a potential 23% decline.
In comparison, Advanced Micro Devices (NASDAQ: AMD) reported a 36% year-over-year revenue growth in Q1 2025, reaching $7.4 billion, driven by a strong demand for AI chips. AMD’s earnings growth is projected to increase by 17% this year and 47% next year, while Palantir’s is expected to grow by 42% this year and 26% in 2026. Furthermore, AMD’s forward earnings multiple stands at 25, significantly lower than Palantir’s valuation metrics.
Should AMD achieve an earnings multiple of 35, its stock price could increase to $200, potentially making it worth more than Palantir, whose projections suggest a price drop to $25 based on similar earnings multiples.
