Palantir Technologies (NASDAQ: PLTR) stock has reached a record closing high of $209, extending its rally as demand for its artificial intelligence (AI) software continues to drive strong revenue growth.
However, the stock’s premium valuation raises questions about how much future growth is already priced in, prompting investors to look for other opportunities in the expanding AI market.
For investors seeking alternatives to Palantir, Finbold has identified the following two stocks that offer exposure to enterprise AI and cloud computing through different business models and growth prospects.
Snowflake (NYSE: SNOW)
Snowflake (NYSE: SNOW) is the more growth-oriented alternative to Palantir, providing cloud-based data infrastructure that businesses use to manage information, run analytics, and develop AI applications.
Snowflake reported $1.55 billion in total revenue for its second quarter of fiscal 2027, up 35% year over year.
Product revenue reached $1.49 billion, increasing 37%, while remaining performance obligations rose 30% to $9 billion as of July 31, 2026. The company also reported a net revenue retention rate of 126%, indicating that existing customers continued to expand their spending on its platform.
At press time, Snowflake stock was trading at $368, following a 7.42% daily gain. Its reported year-to-date (YTD) advance of 68% makes it the stronger performer among the two alternatives, although the rally also raises questions about valuation and how much future growth is reflected in the share price.
The investment case rests on Snowflake sustaining demand for its data platform, expanding AI adoption, and converting revenue growth into stronger profitability.
Its technology allows customers to use data across cloud environments, while its AI products extend the platform into application development and enterprise intelligence.
However, competition in cloud data services and AI infrastructure remains a risk. Snowflake reported a GAAP operating loss of $1.435 billion for fiscal 2026, although it recorded positive adjusted free cash flow of approximately $1.19 billion.
Microsoft (NASDAQ: MSFT)
Microsoft (NASDAQ: MSFT) provides a broader way to invest in AI through Azure cloud computing, Microsoft 365 Copilot, and its established enterprise software business. Unlike Palantir, which focuses on data analytics and AI platforms, Microsoft generates revenue across several major software and cloud markets.
Microsoft reported fiscal fourth-quarter 2026 revenue of $90 billion for the quarter ended June 30, up 18% year over year. Operating income increased 18% to $40.6 billion, while GAAP net income rose 31% to $35.8 billion.
Its cloud business remains central to the investment thesis. Microsoft Cloud revenue reached $59.3 billion in the fourth quarter, according to the company’s published financial metrics, reflecting continued demand for cloud services that support enterprise workloads and AI adoption.
MSFT stock closed at $535 on October 9, up 2.38% for the session and 10.64% YTD.
Its more modest advance compared with Snowflake may appeal to investors seeking a diversified technology company rather than a higher-growth, more specialized AI investment.
Microsoft’s established software business and multiple revenue streams offer a different risk profile from Palantir. Azure, Microsoft 365, and its broader enterprise ecosystem give the company several routes to monetize AI adoption, although returns will depend on customers converting experimentation into sustained spending.
Heavy investment in data centers and AI infrastructure could pressure cash flow, while slower cloud growth or weaker-than-expected AI monetization could weigh on the stock’s valuation.
Investors should also consider whether Microsoft’s current share price adequately reflects its expected earnings growth.
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