2 Stocks Poised to Overtake Palantir in a Year

The resurgence of the "Trump Trade" has sparked renewed interest in certain sectors and financial assets, with investors increasingly believing that Donald Trump may win the upcoming election. This perception is affecting various industries and assets, which are expected to benefit from Trump's policies of lower taxes and less regulation. In this article, we will explore two stocks that could potentially be worth more than Palantir Technologies (PLTR) in a year.



Arm Holdings (ARM) and Applied Materials (AMAT) are two companies that could outperform Palantir in the coming year. Here's why:

1. Arm Holdings (ARM)
Arm Holdings is a leading semiconductor IP licensor, with a significant presence in various industries, including mobile applications (99%), consumer electronics (30%), and emerging niches like cloud computing and networking equipment (15% and 28%, respectively). The company's architecture and IP control 47% of the global chip market, with a strong focus on AI-driven technologies.



Arm's increasing market share and growing demand for AI-driven chips are expected to drive its revenue and earnings growth. The company's revenue is projected to jump 25% to $4.93 billion in the next fiscal year, with earnings expected to increase by 32% to $2.05 per share. This growth is expected to lead to more upside for the stock, with a 12-month median price target of $160, which would be a 14% jump from current levels.

2. Applied Materials (AMAT)
Applied Materials is a leading provider of manufacturing equipment and services for the semiconductor and display industries. The company's strong market position and growth prospects are supported by the increasing demand for semiconductor equipment. Global spending on semiconductor equipment is expected to increase by 24% in 2025, following a 4% increase in 2024.



Applied Materials' services and software, combined with its strong market position and growth prospects, could help its valuation surpass Palantir's in the next year. The company's earnings are expected to jump 32% to $2.05 per share, outpacing Palantir's growth. This stronger earnings growth could lead to more upside for the stock, potentially overtaking Palantir's valuation in the next year.

In conclusion, the growing demand for AI and semiconductor equipment is expected to significantly impact Arm Holdings' and Applied Materials' revenue and earnings growth. Both companies' strong market shares and competitive positions, combined with their growth prospects, could drive their valuations higher than Palantir's in the next year. However, investors should remain cautious and monitor the potential risks and challenges faced by these companies, as well as the broader market trends and geopolitical dynamics.