What is Palantir and why is it significant for this stock group?

Palantir Technologies is a software company specializing in big data analytics and AI solutions, primarily serving government agencies and large enterprises. Its recent stock surge reflects growing demand for AI technologies across both sectors. This success story validates the market potential for the entire AI ecosystem represented in this stock group, from the hardware manufacturers who build the computing systems to the software and infrastructure providers that make advanced AI applications possible.

What exactly are GPUs and why are they important for AI?

GPUs (Graphics Processing Units) were originally designed for rendering video game graphics, but their ability to perform many calculations simultaneously makes them ideal for AI tasks. Unlike traditional CPUs, GPUs can process thousands of operations in parallel, which is perfect for training and running artificial intelligence models. Companies like NVIDIA (NVDA) specialize in these chips, which have become the essential hardware foundation for most AI applications, from data centers to autonomous vehicles.

What's the difference between AI hardware and AI software companies?

AI hardware companies like NVIDIA and Intel provide the physical technology (chips, processors, and systems) that power AI applications. They create the computing foundation needed for running complex algorithms. AI software companies like Palantir, Snowflake, and SoundHound develop the actual applications, platforms, and solutions that use that computing power to analyze data, make predictions, or automate tasks. Both hardware and software are essential parts of the AI ecosystem, with hardware providing the capability and software determining how that capability is used.

What is cloud infrastructure and why does it matter for AI?

Cloud infrastructure refers to the servers, storage, networks, and virtualization software that power cloud computing services. Companies like Microsoft (Azure), Amazon (AWS), and specialized providers in this group offer these resources as on-demand services. This matters tremendously for AI because most organizations can't afford to build and maintain the massive computing capacity needed for AI workloads. Cloud providers offer scalable access to this power without the upfront investment, allowing businesses of all sizes to deploy AI solutions much more quickly and cost-effectively.

How does government adoption of AI affect these stocks?

Government adoption of AI creates significant, stable demand for many companies in this group. Government contracts tend to be large, long-term, and less sensitive to economic cycles than commercial business. Companies serving government needs (like Palantir, Leidos, and CACI) benefit directly from these contracts, while those providing the underlying technology (like NVIDIA, Super Micro Computer, and Intel) benefit as government contractors build out their capabilities. As governments worldwide increasingly view AI as strategic for national security and public service delivery, this demand continues to grow.

16 handpicked stocks

Palantir's AI Ascent

This carefully curated group of stocks represents the backbone of today's AI revolution. Selected by professional analysts, these companies provide the essential hardware, infrastructure, and software that power AI growth across government and commercial sectors.

Han Tan | Market Analyst

Published on July 14

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

NVIDIA Corporation

NVDA

Current price

$188.89

As the leader in GPUs, Nvidia's hardware is the primary engine for the AI models used by Palantir and the broader ecosystem, making it a direct benefi...

As the leader in GPUs, Nvidia's hardware is the primary engine for the AI models used by Palantir and the broader ecosystem, making it a direct beneficiary of increased AI spending.

Microsoft Corporation

MSFT

Current price

$515.74

A primary provider of cloud infrastructure (Azure) and AI services to both the U.S. government and commercial enterprises, making it a key partner and...

A primary provider of cloud infrastructure (Azure) and AI services to both the U.S. government and commercial enterprises, making it a key partner and competitor in Palantir's ecosystem.

Amazon.com Inc.

AMZN

Current price

$222.41

A dominant provider of cloud services to the public and private sector through its AWS and AWS GovCloud platforms, which are fundamental to digital tr...

A dominant provider of cloud services to the public and private sector through its AWS and AWS GovCloud platforms, which are fundamental to digital transformation and AI adoption.

Super Micro Computer, Inc.

SMCI

Current price

$52.50

Snowflake Inc.

SNOW

Current price

$240.54

Arista Networks, Inc.

ANET

Current price

$144.46

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About This Group of Stocks

Our Expert Thinking

Palantir's recent success signals a broader AI adoption wave. This theme captures the entire AI value chain—from high-performance computing and semiconductors to cloud infrastructure and specialized software—all benefiting from increased AI investment across public and private sectors.

What You Need to Know

These stocks represent companies enabling AI implementation at scale. This theme offers exposure to the technology ecosystem supporting the AI revolution, with companies providing critical components for sophisticated data analysis and AI integration into core business operations.

Why These Stocks

Our analysts have selected providers of foundational AI technologies that form the backbone of this transformation. These companies deliver the GPUs, servers, data infrastructure, and networking equipment necessary for organizations to build and deploy powerful AI systems.

Group Performance Snapshot

12 of 16

Stocks Rated Buy by Analysts

12 of 16 assets in this group are rated Buy by professional analysts.

14.3% vs 4%

Group Growth vs Bank interest

This group averaged a 14.3% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🚀

AI Spending Boom

Companies and governments are pouring billions into AI infrastructure and solutions. These stocks provide the essential technology that powers this massive investment wave.

🔍

Hidden Value Chain

While Palantir gets headlines, these companies provide the critical behind-the-scenes technology that makes AI implementation possible. They represent the full ecosystem supporting this revolution.

🌐

Transformative Technology

AI is fundamentally changing how organizations operate across public and private sectors. These companies are providing the essential tools and infrastructure that enable this transformation.

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