Analysts at Forrester Research have recently bestowed recognition upon Palantir Technologies (PLTR 11.14%) and Alphabet (GOOGL -1.76%) (GOOG -1.95%) as the leading players in the artificial intelligence (AI) and machine learning platforms domain. These platforms serve as collections of tools that facilitate model training and application development.

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Palantir: The Stock Ken Griffin's Citadel Sold

Palantir distinguishes itself through its specialization in data analytics. Its Artificial Intelligence Platform (AIP) has propelled the company to a significant position in the AI platforms market. AIP is a novel product that integrates generative AI capabilities into its core analytics platforms, Gotham and Foundry. These combined platforms enable businesses to integrate and query data, thereby gaining valuable insights to enhance decision-making processes.Palantir reported remarkable third-quarter results. The customer count witnessed a substantial 39% increase, reaching 629. Moreover, the average existing customer spent 18% more. As a result, revenue surged by 30% to $726 million, marking the fifth consecutive sequential acceleration in sales. Non-GAAP earnings also jumped by 43% to $0.10 per diluted share. Clearly, Palantir's business is experiencing robust growth.However, Malik Ahmed Khan from Morningstar recently highlighted a crucial distinction between the business and the stock. He stated, "If you examine the fundamental business quality, Palantir is an outstanding entity with ample opportunities in AI and beyond in the big data realm. But when it comes to valuation, it appears that the fundamentals do not align."Wall Street anticipates that Palantir's adjusted earnings will grow by 31% over the next 12 months. Nevertheless, its current valuation of 188 times adjusted earnings seems exorbitantly expensive. Investors are advised to steer clear of this stock, and existing shareholders should consider reducing their positions. Unless earnings growth significantly surpasses expectations, Palantir shares are likely to face a downturn at some point.

Alphabet: The Stock Ken Griffin's Citadel Bought

Alphabet, the parent company of Google, possesses two crucial growth engines. Firstly, Google is the largest adtech company in terms of revenue, and digital ad spending is projected to expand at a rate of 10% annually until 2028. Secondly, Google operates the third-largest public cloud, and cloud services spending is expected to grow by 19% annually during the same period, as per International Data Corp.One of the primary concerns for investors is that Alphabet may lose its dominance in internet search as generative AI becomes more advanced. This could potentially reduce its ability to engage consumers and gather data, thereby negatively impacting its advertising business. Nevertheless, Alphabet is leveraging its decades-long accumulated AI expertise to address this issue.For instance, the company recently incorporated generative AI overviews into Google Search to assist internet users in understanding topics more swiftly. CEO Sundar Pichai claims that these enhancements are increasing usage and satisfaction, especially among young adults. Additionally, the company has introduced AI tools that generate media content for advertising campaigns and tools that aid brands in targeting their advertising more effectively.Beyond advertising, Google is capitalizing on the growing demand for AI cloud computing services. Forrester Research has recently recognized the company as a leader in AI infrastructure solutions and foundational large language models. The strength in these areas enabled Google to gain a percentage point of market share in the third quarter, as reported by Synergy Research Group. Meanwhile, Amazon and Microsoft experienced a decline in their market share.Alphabet reported encouraging financial results in the third quarter, surpassing expectations on both the top and bottom lines. Revenue rose by 15% to $88 billion, indicating a sequential acceleration from 14% in the previous quarter. Additionally, GAAP earnings increased by 37% to $2.12 per diluted share, reflecting a four-percentage-point expansion in operating margin.Looking ahead, Wall Street expects Alphabet's earnings to grow by 20% over the next 12 months. This makes the current valuation of 24 times earnings appear quite reasonable. Investors can feel confident in purchasing a small position in this stock at present.