10 words from the CEO of Palantir about artificial intelligence that should help you invest better in 2025 and beyond

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At the beginning of November Palantir Technologies (NASDAQ: PLTR) released a comprehensive report for the third quarter of 2024. Alex Karp, CEO of the company artificial intelligence (AI)-powered data analytics company, included a statement in a press release. He has a sentence that I believe investors should keep in mind when making investment decisions in 2025 and beyond.

In the context of his full statement, he means that those with AI will be the winners and those without AI will be the losers. He speaks in a very broad sense — from companies to countries. This black and white announcement is much stronger than the usual comments one hears about how important AI will be.

Why should investors give any weight to Karp’s word? In addition to being seemingly extremely bright, even in Silicon Valley conditions, here’s a great reason: Palantir stock’s 341% gain, which knocked S&P 500The 25% return made it the best-performing stock in 2024 on the S&P 500. This performance stems from the company solid quarterly results and guidance that easily beats Wall Street expectations and investor enthusiasm about its long-term growth prospects.

To top the S&P 500 list of best performers would be a great feat for any company at any time. But doing so soon after going public (Palantir’s initial public offering was in September 2020) is extremely rare, perhaps even unprecedented.

So what stocks — aside from Palantir, which is one of the best AI stocks — do I think investors should prefer if they keep Karp’s statement in mind when picking stocks to buy?

If we accept that AI is so critical that “the world will be divided between AI haves and have-nots,” it naturally follows that whichever company leads the way in providing AI technology will be a big winner, assuming the market doesn’t become too fragmented and become a commodity.

Currently, that company Nvidia (NASDAQ: NVDA)whose stock was already a big winner. However, along with the AI market, there is still a lot of room for significant growth over the long term. The company’s graphics processing units (GPUs) dominate the market for advanced AI chips.

But Nvidia is much more than just a chip or hardware supplier. It delivers complete solutions or platforms that include hardware, software and other tools for its target markets (data center, professional visualization, gaming and automotive/robotics). This full-stack strategy, along with partnerships with a number of top companies, gives Nvidia a competitive advantage.

Another thought that naturally comes to mind from Karp’s statement concerns the importance of company size. In many industries, larger companies have long had a competitive advantage over smaller ones because they benefit from economies of scale. They also tend to have more resources to purchase and fund research and development initiatives.

If we accept that AI will be so critical that it will separate winners from losers across the economy, the advantage many large companies already enjoy should become turbocharged. Larger companies will generally have more resources to spend on getting the best AI capabilities — and Nvidia’s GPUs are very expensive, as is hiring top AI talent.

This point suggests that it may be wise for investors to favor big tech companies even more than in the recent past. In addition to Nvidia, these companies include Apple, Amazon, Alphabet, Microsoftand Meta platform. Pioneer of electric vehicles (EV). Tesla it’s also often lumped in as a big tech company because it’s heavily involved in AI.

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Randi Zuckerberg, former director of market development and Facebook spokesperson and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, CEO of Alphabet, is a member of The Motley Fool’s board of directors. Beth McKenna holds positions at Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Palantir Technologies and Tesla. The Motley Fool recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has a disclosure policy.

10 words from the CEO of Palantir about artificial intelligence that should help you invest better in 2025 and beyond was originally published by The Motley Fool

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