The launch of OpenAI's ChatGPT in late 2022 spurred a tidal wave of interest in generative artificial intelligence (AI) companies, sending many of their stock prices parabolic. Palantir Technologies (NASDAQ: PLTR) and Arm Holdings (NASDAQ: ARM) were major beneficiaries.

Duquesne Family Office's chief is cashing in his chips on two leading artificial intelligence (AI) stocks in favor of a drugmaker whose shares are up by 112% for the year.

Palantir Technologies (NASDAQ: PLTR) stock has been on a tearing run on the market in 2024, logging remarkable gains of 370% as of this writing. The rapid uptake of artificial intelligence (AI) software solutions by organizations and governments played a central role in this terrific surge.

Palantir is a “rare cult with no sex and very little drugs and we’re not poisoning anyone,” quipped its billionaire CEO in a recent sitdown.

Another reason the AI bubble can burst in 2025 is due to the expected resolution of GPU scarcity that's sent Nvidia's stock into the stratosphere.

As you can see, the company's price-to-sales ratio has nearly quadrupled over the last year. The P/S ratio isn't a perfect measure of valuation, but 67.5 is off-the-charts high. A P/S of 20 is typically considered expensive, even in an industry like software where stocks tend to earn high valuations.

Palantir Technologies (NASDAQ:PLTR) has experienced a remarkable surge in its valuation this year, with the company’s stock price rocketing more than 330% year-to-date at the time of writing. This incredible upside has been driven by improving growth expectations for companies like Palantir focused on developing its artificial intelligence platform and expanding its customer base.

With its stock up 2,500% in the past five years, it's perhaps not surprising that investors are looking for the next Nvidia (NASDAQ: NVDA). The company has been the biggest winner from the artificial intelligence (AI) boom and as a result has become one of the largest companies in the world.

Palantir Technologies stock (NASDAQ: PLTR) remains up by over 4x since the beginning of the year, trading at about $74 per share.

With the advent of artificial intelligence (AI), shares of Palantir Technologies Inc. PLTR and NVIDIA Corporation NVDA have witnessed parabolic gains, making them popular investments on Wall Street.

Palantir's stock has surged without any selling pauses, raising concerns about a potential sharp pullback. Explore more details here.