Important points
Shares of Palantir Technologies soared on Tuesday after Ark Capital said software companies may have more room to benefit from the AI boom.
Ark’s managing director suggested that data analytics and software companies like Palantir are poised to take AI market share from the big tech giants.
Palantir stock is up more than 140% since the beginning of the year after Tuesday’s rally.
Shares of data analytics software company Palantir Technologies (PLTR) rose to the top of the S&P 500 index on Tuesday after asset manager Ark Invest highlighted software as an area with greater scope to benefit from artificial intelligence (AI) trends. It became a price gainer.
Rahul Bhushan, managing director at Ark Invest Europe, said in an interview with CNBC that data analytics and software companies like Palantir are being sold by big-capitalized technology companies like Microsoft (MSFT), Amazon (AMZN), and Alphabet. He said it may be poised to take away market share. (GOOGL)’s cloud computing platform is at the center of the new AI boom.
More “asymmetric opportunities” in software
Bhushan said hardware and infrastructure has accounted for 80% of the value generated over the past two-and-a-half years as investors pour money into stocks of AI companies. Ark Invest believes that companies operating further down the AI stack, such as those offering software-as-a-service products and platform-as-a-service products, “now have far more asymmetric opportunities. We are finding it,” Bhushan said.
Data analytics providers like Palantir can offer data and AI services customized to specific customer needs, Bhushan said.
Palantir stock rose more than 6% on Tuesday and is on track to rise about 140% in 2024.
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