Two hedge fund managers with a track record for market beating returns sold Nvidia and bought Palantir in the second quarter.

Palantir stands out with its scalable AI impact, unique Ontology platform, and defensible moat. Read why I think PLTR stock is a buy-on-pullback opportunity.

While Palantir might be Wall Street's AI sweet heart, these three stocks offer investors plenty of upside at better multiples.

Palantir Technologies was the worst performer in the S&P 500 on Tuesday, with the stock continuing to surrender gains following a blowout earnings report earlier this month.

Palantir deepens its AI partnership with Fujitsu, licensing its AIP platform in Japan to drive enterprise transformation, with global expansion plans ahead.

During BigBear.ai's second-quarter earnings call, CEO Kevin McAleenan acknowledged that the company has "seen disruptions in federal contracts from efficiency efforts this quarter, most notably in programs that support the U.S. Army, as they seek to consolidate and modernize their data architecture."

AI software firm Palantir saw strong quarterly revenue, but its price-to-earnings ratio could be a warning sign for investors.

Palantir shares have fallen nearly 20% over the past two days following a large post Q2 earnings rally earlier this month. Learn more on PLTR stock here.

One argument for why Figma could be more likely to be a millionaire-maker than Palantir is that it's much smaller. Figma's market cap of around $40 billion is only a fraction of Palantir's market cap of roughly $440 billion. Generally speaking, smaller companies have more room to grow than larger companies do.