Advanced Micro Devices (AMD) and Palantir Technologies (PLTR) stand out as prime buys amid AI’s explosive growth, offering entry points for investors with modest capital despite recent dips.
AI Boom Fuels Demand
Global AI spending hits $2.5 trillion in 2026, up 44% year-over-year, per Gartner, with infrastructure grabbing 17% at $401 billion extra spend.
AMD’s Q4 2025 revenue soared 34% to $10.3 billion, non-GAAP net income jumped 42% to $2.5 billion, and free cash flow nearly doubled to $2.1 billion, yet shares fell 13% on cautious Q1 guidance.
Mark Zuckerberg Said:
“We’re excited to form a long-term partnership with AMD to deploy efficient inference compute and deliver personal superintelligence,“This is an important step for Meta as we diversify our compute. I expect AMD to be an important partner for many years to come.”
AMD’s Edge Sharpens and Palantir Accelerates
Trading at $203.68 with a $332 billion market cap as of February 26, AMD serves eight of the top 10 AI firms. MI450 GPUs and Helios racks launch Q3 2026, doubling compute over prior models with 40 PFLOPs FP4 performance.
Palantir’s shares hover at $134.13, market cap $321 billion. Q4 revenue rocketed 70% to $1.4 billion, U.S. commercial up 137% to dominate 77% total, with $4.3 billion contract bookings and 139% retention.
Bright Road Ahead
Advanced Micro Devices and Palantir Technologies remain well-positioned as AI spending accelerates. AMD is gaining ground in AI chips as hyperscalers diversify suppliers, and its next-gen GPU roadmap could drive continued data center share gains.
Palantir is rapidly scaling its AI Platform, converting pilots into major commercial contracts with strong retention and expanding bookings. Valuations are high, but both companies sit at the center of a powerful, multi-year AI growth cycle offering meaningful upside for long-term investors.
