This month’s list of new buys by the best mutual funds once again shows that the artificial intelligence boom is not over. Top money managers placed massive bets on AI stocks Amazon.com (AMZN) and Palantir (PLTR).
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Driving that demand, Amazon delivered 236% earnings growth in the third quarter, while Palantir’s 600% EPS growth continues to propel PLTR stock toward a fresh breakout. On Friday, rose over 3% in above-average volume to launch a new breakout.
Leading money managers invested an eye-popping $16.2 billion in Amazon stock in this month’s report — 10 times what they poured into fellow AI powerhouse Nvidia (NVDA) in October. But the best mutual funds also scooped up $652 million worth of shares in PLTR stock.
Since the end of last year, Palantir has generated a string of quarters of triple-digit earnings growth. For 2023, Wall Street forecasts a 312% EPS spike.
Sales growth remains solidly in double digits, ranging from 13% to 17% over the last four quarters. In Q3, Palantir generated $558.2 million in revenue, a 17% gain over the prior-year quarter.
Further showcasing institutional demand, PLTR stock commands an A- Accumulation/Distribution Rating and a strong 1.8 up/down volume ratio. Overall, Palantir earns a 98 Composite Rating.
Palantir Takes AI Into Orbit With MetaConstellation
As Santa gets ready to circumnavigate the globe, Palantir continues to power AI-assisted decision-making from war zones to factory floors to outer space.
The Denver, Colo.-based company has its hands in a wide range of industries, including defense, intelligence, energy, autos, data protection, health care, retail, semiconductors and more. Commercial and government clients include the likes of Airbus (EADSY), Ferrari (RACE) and the United Kingdom’s NHS.
Palantir also offers MetaConstellation, harnessing the power of satellite constellations to empower decision-makers back on earth. MetaConstellation integrates with sensor constellations, optimizing hundreds of orbital, terrestrial, and aircraft sensors, as well as AI models. The platform enables users to ask time-sensitive questions across the entire planet.
The company also operates Palantir AIP, allowing clients to run large language models (LLMs) and other AI technologies safely and securely across their networks. Its Palantir Foundry platform enhances data-driven decision-making and situational intelligence to empower asset and risk management.
Last month, Dresner Advisory Services recognized Palantir as a top performer in the 2023 AI, Data Science and Machine Learning Wisdom of Crowds Market Study.
PLTR Stock Rides AI Boom To Buy Point
Since its 2020 IPO, Palantir has seen its share of vicious volatility. But PLTR stock established a bottom at the end of last year and is now teasing a new breakout.
The current formation is a second-stage cup pattern offering a 20.24 buy point. On Wednesday, PLTR briefly hit that entry before edging lower. But on Friday, Palantir stock gained over 3%, pushing into buy range. Once again, volume was above average.
Showing market leadership, its relative strength line has already hit a new high to earn a blue dot in MarketSmith.
Confirming Palantir’s technical strength, the stock trades well above its 21-day, 50-day and 200-day moving averages.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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