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Consider switching your investment focus from Palantir to these two artificial intelligence (AI) stocks that might provide better returns.

Consider whether it's worth ditching Palantir and opting for these two Artificial Intelligence (AI) stocks as alternatives.

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Considering a shift from Palantir? Here are two AI stocks that could be worth your investment.
Considering a shift from Palantir? Here are two AI stocks that could be worth your investment.

Consider switching your investment focus from Palantir to these two artificial intelligence (AI) stocks that might provide better returns.

In the ever-evolving world of technology, Artificial Intelligence (AI) has become a key focus for many companies. Two such companies, SoundHound AI and Meta Platforms (META), are making significant strides in the AI sector.

SoundHound AI, a young tech company specialising in voice AI solutions, reported a impressive first-quarter revenue of $29.1 million, marking a 151% year-over-year increase. The company, which boasts a $1.2 billion order backlog that could last for about six years, offers voice platforms and agents in 25 languages. Despite not yet being profitable, SoundHound AI's stock, while considered high-risk due to its volatility, has the potential to benefit companies across various industries such as restaurants, auto companies, and healthcare.

On the other hand, Meta Platforms is aiming to be at the forefront of the AI revolution. The tech giant reported revenue of $42.3 billion in the first quarter of 2025, a 16% year-over-year increase, and net income of $16.6 billion, a 35% increase. Meta Platforms is investing heavily in its AI infrastructure, with plans to boost capital expenditures to between $64 billion and $72 billion in 2025.

Meta Platforms started Meta Superintelligence Labs (MSL) on June 30, housing its AI foundation models, products, and research projects. The MSL team includes notable figures such as Alexandr Wang (ex-CEO of Scale AI), Nat Friedman (former CEO of Github), and Daniel Gross (co-founder of Safe Superintelligence Inc.). The company is also seeking to raise $29 billion from private capital firms to build AI data centers.

Meta Platforms is aiming to provide fully automated AI ads by the end of next year. This move could revolutionise the advertising industry, making it more efficient and targeted than ever before.

Meanwhile, the success of Palantir Technologies' Artificial Intelligence Platform (AIP) services has significantly contributed to its share price increase. Palantir Technologies' share price has increased by 393% over the last year, making an initial investment of $10,000 worth approximately $48,500. However, the company is trading at a high price-to-earnings (P/E) ratio of 584.

In contrast, SoundHound AI is trading at a price-to-sales (PS) ratio of 40, which is less expensive than Palantir's P/S ratio of 107. The AI voice market, according to research company SNS Insider, has a growth potential of 32.5% annually until 2032.

While SoundHound AI and Meta Platforms are making significant strides in the AI sector, it's clear that the race to dominate this technology is far from over. Both companies are investing heavily in their AI capabilities, and the future of AI technology looks promising.

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