As earnings season kicks into high gear, investors are eagerly awaiting insights on the future of artificial intelligence (AI) stocks. Among the most closely watched companies are Palantir Technologies (PLTR), Amazon (AMZN), and SoundHound AI (SOUN). Wall Street analysts have weighed in on these stocks, and here’s a rundown of their takes.
Palantir Technologies, a data analytics company, has impressed investors with rapid growth across its commercial and government businesses. Despite near-term challenges, Wall Street remains optimistic about the long-term potential of several AI companies to deliver strong returns. Analysts expect PLTR to report earnings per share (EPS) of $0.14 and revenue growth of 38.5% in Q2.
In contrast, SoundHound AI has faced significant headwinds due to profitability concerns and rising competition in the voice AI space. However, analysts still see potential for growth in areas like automotive through organic innovation and strategic acquisitions. The company is expected to report a narrower loss per share of $0.09 and revenue growth of 144% year-over-year.
Amazon, on the other hand, has been seen as a stalwart in the AI space, with its cloud computing unit, Amazon Web Services (AWS), poised for significant growth opportunities. Analysts expect AMZN to report EPS of $1.33 and revenue growth of 9.5% in Q2.
According to TipRanks’ Stock Comparison Tool, Palantir Technologies stands out as the most attractive AI stock among these three, followed closely by Amazon. However, analysts still caution that PLTR’s valuation may pose a downside risk. With a Strong Buy consensus rating on Amazon and Hold consensus ratings on both Palantir and SoundHound AI, investors are advised to weigh their options carefully before making any decisions.
Ultimately, the Q2 earnings results will provide crucial insights into the future of these AI stocks. With Amazon’s AWS business expected to benefit from significant AI tailwinds, it may be worth keeping a close eye on this stock.
Source: https://www.tipranks.com/news/pltr-vs-amzn-vs-soun-which-ai-stock-is-wall-streets-best-pick-ahead-of-q2-results