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C3.ai (AI) and Palantir (PLTR): Two AI Stocks With Potential to Double

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  //stocks-investing.news-articles.net/content/202 .. pltr-two-ai-stocks-with-potential-to-double.html
  Published in Stocks and Investing on Wednesday, November 26th 2025 at 8:27 GMT by The Motley Fool

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“2 AI Stocks That Could Still Double From Here” – A Deep‑Dive Summary

The November 26, 2025 article from The Motley Fool’s investing section tackles a familiar investor question: Which AI‑focused shares still have the room to climb dramatically, even after the AI boom has already priced in much of their upside? The piece zeroes in on two companies that, according to the authors, stand out for their strong fundamentals, broad market reach, and relatively modest valuations compared with the hype surrounding the AI sector.

1. The Premise: Why Two Stocks?

The article opens with a brief reminder that the AI narrative has reshaped the market landscape in 2023‑2025, but that the market has not yet fully reflected every opportunity. The authors point out that many AI bets are either overvalued or too niche. The two chosen stocks—C3.ai (ticker: AI) and Palantir Technologies (ticker: PLTR)—represent distinct but complementary facets of the AI ecosystem: a cloud‑based, enterprise‑grade AI platform (C3.ai) and a data‑analytics platform that harnesses AI for real‑world decision making (Palantir). Both are priced in a way that the authors believe still leaves a sizeable upside if their growth stories play out as forecast.

2. C3.ai (AI)

Business Snapshot

C3.ai is a B2B SaaS company that provides end‑to‑end AI solutions for industry, government, and large enterprises. The firm’s product suite includes pre‑built AI applications for sectors such as energy, manufacturing, and finance, and it offers a platform that allows customers to build and deploy their own AI models quickly.

Key Numbers

• Revenue: $143 million in FY2024, up 140% YoY.
• EBITDA: Negative in FY2024, but the margin trend has been improving, with projected EBITDA margin expansion to 20% by FY2026.
• Customer Base: 120+ customers worldwide, including Fortune 500 companies and major state‑owned utilities.

Growth Drivers

1. Enterprise AI Adoption: Companies are investing in AI to boost productivity, cut costs, and unlock new revenue streams. C3.ai’s pre‑built solutions lower the barrier to entry, making it attractive for customers without large data science teams.
2. Strategic Partnerships: The firm has tied up with major cloud providers (AWS, Azure, GCP) to integrate its platform into their AI toolkits, broadening reach and adding a new revenue stream.
3. Government Contracts: Several U.S. federal agencies are moving toward AI‑driven analytics; C3.ai’s experience in regulated sectors positions it well for winning new contracts.
4. Cost Efficiency: The company’s operating model keeps fixed costs low relative to its scaling revenue, which should improve profitability as sales grow.

Risks & Concerns

• Competitive Landscape: Giants like Microsoft, Google, and Amazon are building their own AI platforms, potentially eroding C3.ai’s market share.
• Execution: Scaling AI services worldwide requires skilled talent; a shortage could slow growth.
• Valuation: Even at a price‑to‑sales ratio (P/S) of 4x, some analysts argue that C3.ai’s future growth could justify a higher multiple.

Outlook

The article concludes that if C3.ai can close at least 200 new high‑value contracts over the next three years, the stock could hit a 20‑30% upside by 2028. A target price of $85–$95 per share (roughly 2–3x current price) is set, reflecting both revenue growth and margin expansion expectations.

3. Palantir Technologies (PLTR)

Business Snapshot

Palantir offers data‑integration and analytics software that employs AI to uncover insights from large, complex data sets. Its two flagship platforms—Foundry (for enterprises) and Apollo (for government)—are used to solve problems ranging from supply‑chain optimization to counter‑terrorism.

Key Numbers

• Revenue: $1.95 billion in FY2024, up 32% YoY.
• Gross Margin: 73%, signaling strong pricing power.
• Cash Flow: Positive operating cash flow for the last three quarters, with a robust balance sheet.

Growth Drivers

1. Enterprise Expansion: As more firms adopt AI, demand for robust data‑platforms like Palantir’s continues to rise.
2. Public‑Sector Contracts: The company’s long‑term government relationships provide steady revenue and high barriers to entry for competitors.
3. Product Innovation: Continuous updates, including new AI‑driven analytics modules, keep Palantir ahead of rivals.
4. International Growth: The firm has been aggressively expanding into Europe and Asia, diversifying its revenue base.

Risks & Concerns

• Valuation: With a P/E of 50x and a P/S of 12x, Palantir is considered expensive by many metrics; a correction could trim upside.
• Competition: Microsoft Power BI, Snowflake, and other data‑platform providers are intensifying competition.
• Political & Regulatory: Heavy reliance on government contracts could be sensitive to policy changes or budget cuts.

Outlook

Despite the lofty multiples, the article argues that Palantir’s continued dominance in the enterprise AI space, coupled with a broadening customer mix, supports a long‑term upside. A target price of $350–$420 per share—representing a 70–90% rise over current levels—is suggested, assuming sustained revenue growth and margin expansion.

4. Key Takeaways

The article stresses that while both stocks carry their own risk profile, the upside potential, when viewed in the context of the broader AI market, is significant. The authors encourage investors to keep a close eye on the companies’ quarterly earnings and strategic milestones, adding or rebalancing positions as new contracts or product updates come to light.

5. Final Thoughts

“2 AI Stocks That Could Still Double From Here” underscores a central thesis of the Fool team: AI is still a long‑term play, and a few well‑positioned companies are likely to continue delivering value as adoption accelerates. By focusing on C3.ai and Palantir, the article presents a balanced view—one that blends high growth with reasonable valuation assumptions. Whether a reader decides to add these stocks to a portfolio, or simply monitor them for potential opportunities, the key takeaway is clear: the AI sector remains fertile ground, and careful selection can uncover meaningful upside even in a market that’s already pricing in significant growth.