The ascent of Palantir in the AI market has been nothing less than stunning but it also demonstrates what happens when hype rises above economics. Palantir has become one of the most prominent names in AI, where its data analytics and generative AI tools are achieving attention globally. But its valuation shows a different perspective, one where the price tag seems more associated with hope rather than actual performance.
With a staggering 277 times forward earnings, Palantir seems like a company that is expecting nothing but the best in a world full of imperfections. This is where ASML Holding and Advanced Micro Devices (AMD) come in as the quiet contenders.
On one hand, ASML is the key player of the chip making world, holding the technology that no other company in the world can duplicate. On the other hand, AMD has been gradually strengthening itself and is now in a position to compete with Nvidia, thus preparing for the long-term in the GPU and the data center markets.
Both companies still have their playouts in the AI story but with such financial strengths and valuation metrics that are more justifiable. Unlike Palantir, whose tale feeds on futuristic potential, ASML and AMD are showcasing real progress at the moment.
By the end of December 2026, the AI market will probably begin rewarding actual performance rather than exaggerated claims. Palantir may keep on innovating, but there’s not much margin for error bearing in mind how overvalued it is.
However, ASML and AMD are laying the groundwork for AI, and they are not simply fueling the hype. As the hype dies down and investors look for companies with roots in reality, these two can quietly surpass Palantir both in value and vision. Sometimes it’s not the one making the most noise who wins the game, but the one that just keeps building when the noise dies down.
