Nvidia (NASDAQ:NVDA) CEO Jensen Huang and his wife Lori recently attended the groundbreaking of a new research facility at the couple’s alma mater, Oregon State University (OSU), which they helped fund (and which is named in their honor). In a subsequent discussion with OSU President Jayathi Murthy, Huang said, “We are at the beginning of a new industrial revolution.”
He went on to say that we are “manufacturing” artificial intelligence (AI) during this time.
One company has already ramped up production. If Huang is right, this company will benefit from the AI “revolution.”
Palantir’s Bootcamps
Palantir Technologies (NYSE:PLTR) has decades of experience with AI that has enabled the company to quickly develop generative AI tools that businesses can actually use. The result was the Artificial Intelligence Platform (AIP), which helps companies develop AI-powered solutions to real-world problems.
To get to the bottom of these issues, Palantir hosts bootcamps. These consist of “immersive, hands-on keyboard sessions.” [that] enable new and existing customers to conduct live development alongside Palantir engineers, all working toward the common goal of deploying AI in operations.” This process helps companies “go from ground zero to use case in just one to five days.” . Palantir says there is a “growing” backlog of AIP bootcamps due to overwhelming demand.
Back in October, the company set itself the internal goal of conducting 500 AIP boot camps by 2024. However, demand has been so great that 560 bootcamps have been delivered to 465 organizations in just four months, and the backlog of participants is growing.
The full impact of these bootcamps has not yet been reflected in Palantir’s financial results as the company continues to ramp up to meet unprecedented demand. The company’s U.S. commercial sales, its fastest-growing segment, grew 70% year-over-year thanks to AIP. Additionally, the segment is expected to achieve growth of “at least” 40% this year.
Based on some metrics, the valuation might seem high. However, as measured by the price-to-earnings-to-growth (PEG) ratio, which takes into account Palantir’s accelerating growth, it has a multiple of less than 1, suggesting an undervalued stock. That makes Palantir stock a buy.
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Danny Vena holds positions at Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.
Jensen Huang, CEO of Nvidia, says: “We are at the beginning of a new industrial revolution” thanks to artificial intelligence (AI). 1 share to buy if he’s right. was originally published by The Motley Fool