Palantir Technologies (NASDAQ: PLTR) currently holds a market valuation of $330 billion, which is significantly larger than competitors Advanced Micro Devices (NASDAQ: AMD) at $206 billion, Salesforce (NYSE: CRM) at $248 billion, and ASML (NASDAQ: ASML) at $300 billion. Despite this higher valuation, Palantir’s revenue is roughly one-tenth the size of the combined revenues of the three competitors, leading analysts to predict that these companies could surpass Palantir in value by 2028.
In recent quarters, Palantir reported growth rates of 39% in Q1 and projected 38% for Q2, while analysts expect sustained growth from AMD, ASML, and Salesforce, albeit at potentially lower long-term rates. Currently, Palantir commands a price-to-sales ratio of 112, which is considered extremely high compared to competitors; many analysts suggest it should be closer to a 40 times sales premium based on growth metrics.
With strong revenue and profit figures, AMD, ASML, and Salesforce are positioned as more stable investments, with the expectation of greater market caps in the near future, contrasting with Palantir’s inflated valuation that may not be sustainable.
