With the rapid adoption of artificial intelligence (AI) by major technology companies likely to continue due to the lucrative end-market opportunities it offers, an AI model has weighed in on whether Microsoft (NASDAQ: MSFT) or Palantir (NYSE: PLTR) stock are better in this area.
Indeed, both Microsoft and Palantir have jumped on the AI bandwagon, relying on the technology to further stimulate their business growth, so Finbold has tasked the OpenAI brainchild ChatGPT-4o with providing insights on which is the better AI stock, as of August 21.
ChatGPT’s take on Microsoft stock
Notably, ChatGPT-4o has observed that Microsoft “has established itself as a leader in AI, leveraging its partnership with OpenAI and its substantial cloud infrastructure through Azure,” and singled out its diversified portfolio, heavy AI integration, and financial stability, arguing that:
“Despite recent fluctuations, Microsoft’s solid financials, large market share in cloud computing, and consistent revenue growth make it a stable choice for investors seeking steady, long-term growth. In fiscal 2024, Microsoft’s revenue increased by 15% year over year to $64.7 billion, with its Intelligent Cloud business growing by 19%.”
However, the chatbot has also noted that Microsoft, as a large company, might experience a slower growth rate compared to smaller, more focused companies like Palantir, as well as its potential perception as “more fully valued, offering potentially less upside in terms of stock price growth.”
Meanwhile, the price of Microsoft stock at press time stood at $424.80, recording a 0.78% gain on the day, advancing 2.41% across the week, although having declined 4.10% on its monthly chart but growing 14.54% year-to-date (YTD), according to the latest data.
ChatGPT’s take on Palantir stock
On the other hand, OpenAI’s chatbot has highlighted Palantir’s “rapid growth driven by the adoption of its Artificial Intelligence Platform (AIP), particularly among government and enterprise clients,” as well as acknowledging its “potential for high returns, albeit at a higher risk.”
At the same time, it has stressed that the big data analytics company specializing in software platforms had reported a revenue increase of 27% in the second quarter of 2024 to $678 million, with a substantial expansion in its customer base and deal sizes.
Currently, Palantir stock’s price amounts to $32.32, which indicates a 0.55% drop on its daily chart but, nonetheless, an increase of 5.69% in terms of its weekly movements, adding up to the 13.56% gain over the past month, and making a significant advance of 94.93% since the year’s turn.
ChatGPT’s verdict on Microsoft vs. Palantir
Ultimately, as ChatGPT-4o emphasized, the choice between Microsoft and Palantir as AI stocks depends on individual investment goals and risk tolerance, “as both companies present unique opportunities in the AI sector,” currently dominated by semiconductor giant Nvidia (NASDAQ: NVDA), concluding that:
“In summary, Microsoft offers stability and strong fundamentals, making it suitable for long-term, risk-averse investors, whereas Palantir presents an opportunity for those willing to take on more risk for potentially higher returns in the AI sector.”
It is also worth pointing out that Microsoft stock and Palantir stock have demonstrated different chart patterns when it comes to their price performance this year, with the former exercising average technical rating, while the latter is a steady performer in every aspect – long and short-term.
All things considered, the AI model is correct in its assessment that choosing between these two AI stocks depends on the type of investor and specific goals. However, trends in the stock market can easily shift, so doing one’s own due diligence is critical when investing.
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Source: https://finbold.com/microsoft-or-palantir-we-asked-chatgpt-which-is-better-ai-stock/