Palantir's Huge Run-Up Not Linked to Business Performance: What Stocks Could Be Next?

Palantir's stock has more than doubled in 2025, driven by market exuberance rather than business performance. The company's valuation has exploded from 10-20 times sales to over 120 times sales. While any stock can potentially double if circumstances are similar, here are two stocks that could realistically double without unreasonable valuations: Alphabet and Nvidia.

In the volatile world of tech stocks, some companies have seen their valuations skyrocket, while others have struggled to meet expectations. Among the notable performers in 2025, Alphabet Inc. (NASDAQ: GOOGL) and NVIDIA Corporation (NASDAQ: NVDA) stand out as companies with realistic potential to double without unreasonable valuations.

Alphabet Inc.

Alphabet Inc. reported robust earnings for the second quarter of 2025, with adjusted EPS of $2.31 surpassing forecasts of $2.18. Revenue rose 14% year-over-year (YoY) to $96.43 billion [1]. The company's AI initiatives, particularly in Google Cloud, played a significant role in driving growth. Google Cloud revenue increased by 32% YoY to $13.62 billion, while Gemini, Alphabet's AI platform, saw a 50% increase in requests [1]. Alphabet's shares surged following these strong earnings, boosting related stocks.

Despite the impressive performance, Alphabet's valuation remains high, with a price-to-sales ratio of over 120 times. However, the company's strong earnings growth and AI investments suggest that this valuation is supported by its growth prospects. Investors should closely monitor Alphabet's ability to capitalize on emerging technologies and maintain its competitive edge.

NVIDIA Corporation

NVIDIA Corporation has also seen significant growth in 2025, with its stock price increasing by 54.5% over the past year. The company's leading position in the GPU market and its role in the AI boom have driven this growth [3]. NVIDIA's recent strategic reentry into China's AI market further highlights its ability to adapt to changing geopolitical dynamics. The resumption of H20 AI chip sales to China, approved by the U.S. government, has already triggered a 4.5% jump in its share price [2].

NVIDIA's valuation remains high, with a price-to-sales ratio of over 100 times. However, the company's strong market position, technological edge, and ability to innovate suggest that this valuation is justified. Investors should closely monitor NVIDIA's ability to maintain its dominance in the GPU market and adapt to geopolitical volatility.

Conclusion

While Palantir's stock has more than doubled in 2025, driven by market exuberance rather than business performance, Alphabet and NVIDIA offer more realistic potential for doubling without unreasonable valuations. Both companies have demonstrated strong earnings growth, technological leadership, and the ability to adapt to changing market conditions. Investors should closely monitor these companies' performance and the broader trends in AI and technology.

References:
[1] https://www.cnbc.com/2025/07/23/alphabet-google-q2-earnings.html
[2] https://www.ainvest.com/news/nvidia-s-strategic-reentry-into-china-s-ai-market-a-geopolitical-shift-with-market-implications-250710105184c25e7e5fca74/
[3] https://www.nasdaq.com/articles/rigetti-next-nvidia-and-should-you-buy-stock