Prediction: This Artificial Intelligence (AI) Data Center Stock Will Be Worth More Than Palantir by 2030
Palantir's Current Standing and Valuation Concerns
Palantir Technologies (NASDAQ: PLTR) has been one of the standout performers in 2025, with shares up 82% year-to-date, making it the top-performing stock in the S&P 500. Its momentum stems largely from its enterprise software solutions and growing adoption in both public and private sectors. However, Palantir's valuation multiples are currently much higher than those seen during the late 1990s dot-com bubble, creating concerns about sustainability.
While some analysts predict Palantir could join the trillion-dollar market cap club by the decade’s end, a correction in valuation seems likely. Investors should weigh this against emerging players in AI infrastructure who may offer more grounded growth potential.
Comparing Palantir and CoreWeave: Different Angles on AI Growth
Palantir’s breakthrough came with the April 2023 launch of its Artificial Intelligence Platform (AIP), which helps complex organizations map out business structures in detail through ontologies. This product supports executive decision-making by simulating business scenarios with real-time data.
AIP has notably helped Palantir grow its commercial customer base faster than its overall customer growth, reducing dependence on government contracts, especially with the U.S. Military. This software-first approach has been central to Palantir’s AI narrative.
In contrast, CoreWeave (NASDAQ: CRWV) focuses on AI infrastructure, providing cloud-based access to Nvidia GPU architectures. The demand for AI-capable hardware is expected to surge dramatically. According to McKinsey & Company, global spending on AI infrastructure could reach $6.7 trillion by 2030, with most of that directed toward hardware for data centers.
This suggests the first phase of AI growth emphasizes software enhancements, benefiting companies like Palantir. However, the next phase will likely prioritize infrastructure investments by major cloud hyperscalers such as Microsoft, Amazon, and Alphabet. CoreWeave is already a key partner for many of these firms, positioning it well for the coming expansion in AI infrastructure spending.
Wall Street’s Revenue and Earnings Outlook
CoreWeave is on track to generate more revenue than Palantir this year, yet its market capitalization remains roughly one-quarter of Palantir’s $326 billion. Analysts forecast CoreWeave’s revenue to more than triple while turning profitable within two years. Palantir’s revenue and profits are expected to grow more modestly during the same timeframe.
Given the anticipated continuation of Nvidia’s GPU releases and sustained capital expenditures by cloud giants, CoreWeave’s growth prospects appear stronger. Palantir’s lofty valuation might face pressure as investors reassess its growth trajectory and seek more compelling opportunities.
Is Now the Time to Buy CoreWeave?
CoreWeave’s stock has surged nearly 300% since its IPO earlier this year, showing signs of overextension and meme-stock-like behavior. While the company's fundamentals and long-term potential look promising, initiating a position at current prices may carry risk.
A measured approach could involve waiting for a more attractive entry point. Over the next five years, CoreWeave’s valuation is likely to grow faster than Palantir’s, reflecting its exposure to the growing AI infrastructure demand.
- Palantir: Strong software platform with high valuation risk
- CoreWeave: Infrastructure provider poised for rapid growth amid AI hardware demand
- Investment strategy: Consider CoreWeave for long-term growth but watch for better entry prices
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