3 High-Powered AI Stocks That Could Be the Next Palantir Technologies

Palantir Technologies (NASDAQ: PLTR) has delivered extraordinary returns. Over the past five years, the data analytics company has generated a staggering 1,122% return, transforming an initial investment of $10,000 into $122,200. As a result, the artificial intelligence (AI) powerhouse's stock currently trades at a staggering 222 times forward earnings.

The catalyst? Palantir's Artificial Intelligence Platform (AIP), launched in mid-2023, has driven strong revenue growth, including 39% year-over-year growth in the first quarter of 2025. This AI pioneer demonstrates how powerful emerging technology can create massive shareholder value over time.

Image source: Getty Images.

Here are three growth stocks with similar characteristics -- cutting-edge platforms, expanding markets, and the potential for significant returns -- that could be the next Palantir.

A government AI contractor

BigBear.ai Holdings (NYSE: BBAI) operates in Palantir's wheelhouse -- AI-powered decision intelligence solutions for government agencies. While the stock has struggled this year, falling 14%, the company's fundamentals tell a different story about its potential as a turnaround play in the lucrative government AI market.

BigBear.ai serves as a critical technology partner to agencies like the Department of Homeland Security, delivering AI solutions for digital identity verification and national security applications. This government-first approach mirrors Palantir's early strategy, building deep relationships with agencies that have massive budgets and long contract cycles. The company's $385 million backlog provides revenue visibility -- more than 10 times its quarterly revenue run rate.

Financially, BigBear.ai is showing signs of stabilization. First-quarter revenue grew 5% year over year to $34.8 million, while the company significantly improved its net loss from $127.8 million to $62 million. Management affirmed its 2025 outlook for revenue between $160 million and $180 million, suggesting confidence in execution despite a challenging environment.

The company strengthened its balance sheet during the quarter, reducing long-term debt by $58 million and raising $64.7 million in gross proceeds from warrant exercises. With $107.6 million in cash, BigBear.ai has the financial flexibility to invest in growth initiatives while government agencies increasingly prioritize AI capabilities.

What makes BigBear.ai compelling is its position at the intersection of two powerful trends: government digital transformation and AI adoption. As CEO Kevin McAleenan noted, the company is seeing "early and encouraging signs" of momentum in sectors where the company has built deep relationships. With a market cap of $1.1 billion compared to Palantir's $288 billion valuation, BigBear.ai trades at a significant discount despite operating in the same high-growth government AI market.

An insurance disruptor

Lemonade (NYSE: LMND) employs AI to disrupt the $9 trillion global insurance industry. The company's AI algorithms handle everything from risk assessment to claims processing, sometimes paying claims in as little as three seconds. This technology-first approach creates significant cost advantages over traditional insurers.

The company's growth trajectory is strong, despite its stock trading 57% below its 2020 IPO price. Lemonade recently surpassed $1 billion in in-force premium just eight and a half years after selling its first policy, with revenue skyrocketing 2,240% since going public in 2020. Lemonade also now serves over 2.5 million customers, pushing it toward a profitability inflection point, with management guiding toward positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of 2026.

What's the key value driver? The real catalyst lies in Lemonade Car, a subsidiary targeting the massive $350 billion U.S. auto insurance market. Early results show promise, with car insurance cross-sales more than doubling in Q1 2025. If Lemonade can capture even a modest share of this market with its AI-first platform, the stock could deliver exceptional long-term returns akin to Palantir.

A top AI infrastructure pick-and-shovel play

Nebius Group N.V. (NASDAQ: NBIS) is capitalizing on the AI boom by providing the essential infrastructure that powers AI development. The Amsterdam-based company has seen its stock surge 36% year to date as demand for AI cloud services accelerates. In the first quarter of 2025, Nebius delivered explosive revenue growth of 385% year over year to $55.3 million, driven primarily by its core AI infrastructure business.

Nebius operates as a full-stack AI cloud platform designed specifically for intensive AI workloads, offering compute, storage, managed services, and tools that AI builders need to develop and run their models. The company's proprietary cloud software architecture and in-house designed hardware differentiate it from traditional cloud providers. Beyond its core platform, Nebius maintains stakes in complementary businesses, including Avride (autonomous vehicles) and TripleTen (tech education).

While Nebius remains unprofitable with an adjusted EBITDA loss of $62.6 million in Q1 2025, the company is positioned at the intersection of two powerful trends: the AI infrastructure buildout and the shift toward specialized cloud services.

As AI workloads become more complex and demanding, companies increasingly require purpose-built infrastructure rather than general-purpose cloud services, creating a significant opportunity for specialized players like Nebius to capture market share from traditional providers.

Nebius thus offers explosive growth potential as the essential pick-and-shovel provider in the AI gold rush, making it a compelling pick for investors seeking the next Palantir-like AI success story.

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George Budwell has positions in Lemonade and Palantir Technologies. The Motley Fool has positions in and recommends Lemonade, Nebius Group, and Palantir Technologies. The Motley Fool has a disclosure policy.