AMD vs. Palantir: Which AI Stock Has More Upside?

AMD and Palantir are key players in the AI space, with AMD gaining 35% in 2025 due to its AI GPU demand, while Palantir has surged 107% driven by strong demand for its AI-powered platforms. Wall Street is cautiously optimistic on AMD, with a Moderate Buy consensus rating and a $184.74 average stock price target indicating 13.60% upside potential. In contrast, Palantir has a Strong Buy consensus rating and a $23.50 average stock price target, suggesting 46.15% upside potential.

The artificial intelligence (AI) sector has been a significant driver of growth for several companies, with AMD and Palantir emerging as key players. AMD has seen a 35% gain in 2025, primarily driven by robust demand for its AI GPUs, while Palantir has surged by 107% due to strong demand for its AI-powered platforms. Wall Street's outlook on these companies is cautiously optimistic.

AMD, with its AI-centric growth strategy, reported Q2 2024 revenue of $5.8 billion, with data center revenue surging 115% year-over-year to $2.8 billion, driven by AI GPUs and EPYC CPUs [1]. The company's near-term margin pressures are seen as temporary investments in MI400 GPUs and Helios AI systems, with non-GAAP gross margin guidance at 53.5% for Q3 2024. Analysts project data center GPU revenue to reach $6–8 billion by 2026, with a forward P/E of 41.8x and an average 2026 price target of $162.34 [1].

Palantir Technologies, on the other hand, has seen its market capitalization balloon from roughly $12 billion to nearly $400 billion, placing it ahead of enterprise software heavyweights such as SAP, Salesforce, and Adobe [2]. The company has swiftly become a crucial operating system for large enterprises and government agencies around the world. However, the stock remains historically pricey, and a valuation reset could be on the horizon [2].

While both companies are positioned to benefit from the AI revolution, Taiwan Semiconductor Manufacturing (TSMC) is seen as a potential long-term winner due to its crucial role in AI infrastructure investment. TSMC is already in the middle of an unprecedented growth cycle, benefiting from structural demand visibility that stretches well into the next decade [2].

Conclusion

AMD and Palantir are key players in the AI space, with AMD's AI GPU demand driving a 35% gain in 2025 and Palantir's AI-powered platforms surging by 107%. Wall Street is cautiously optimistic on AMD, with a Moderate Buy consensus rating and a $184.74 average stock price target indicating 13.60% upside potential. In contrast, Palantir has a Strong Buy consensus rating and a $23.50 average stock price target, suggesting 46.15% upside potential. Taiwan Semiconductor Manufacturing, however, is seen as a potential long-term winner due to its crucial role in AI infrastructure investment.

References

[1] https://www.ainvest.com/news/amd-stock-buy-ai-growth-story-fully-unfolds-2508/
[2] https://www.nasdaq.com/articles/prediction-1-artificial-intelligence-ai-stock-will-be-worth-more-palantir-technologies-0