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Prediction: 2 AI Stocks Will Be Worth More Than Nvidia and Palantir Technologies Combined by 2030 (Hint: Not Apple) | The Motley Fool

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  Published in Science and Technology on Thursday, October 30th 2025 at 4:28 GMT by The Motley Fool
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Summary of “Two AI Stocks Worth More Than Nvidia and Palantir by 2030” (The Motley Fool, October 30, 2025)

The article opens by framing the current AI revolution as a once‑in‑a‑century opportunity. It notes that, according to the World Economic Forum, AI is projected to add $15.7 trillion to global GDP by 2030. The author points out that while Nvidia and Palantir have dominated the headlines, there are two other AI‑centric companies that, in the author's view, have the potential to eclipse those giants in terms of intrinsic value by 2030.

1. Overview of the AI Landscape

The piece begins with a primer on why AI is different from past tech waves. It cites three critical enablers:

1. Hardware Advancements – GPUs and specialized AI chips are becoming cheaper and more powerful.
2. Data Availability – The sheer volume of data being generated provides the raw material for training more sophisticated models.
3. Software & Algorithms – Breakthroughs such as transformer architectures (e.g., GPT‑4) and reinforcement learning are pushing the envelope of what AI can do.

The author links to a separate Motley Fool article titled “AI Fundamentals: How the New Frontier Is Built”, which offers a deeper dive into these drivers, including discussions of the data pipeline, model training costs, and the importance of inference latency in commercial deployments.

2. Why Nvidia and Palantir May Plateau

Nvidia

The article argues that Nvidia’s dominance hinges on its GPU supply chain, which is highly capital intensive and vulnerable to geopolitical risks. Even as the company diversifies into data‑center CPUs (via the acquisition of Arm) and edge computing, the author cautions that Nvidia’s growth could slow once the GPU market saturates or if competitors develop more efficient chip architectures. A reference is made to a market‑analysis piece titled “The Limits of GPU‑Powered AI” that discusses how emerging AI‑specific chips might undercut Nvidia’s pricing.

Palantir

Palantir’s valuation, according to the article, is driven largely by its enterprise software stack and large‑government contracts. While the platform is versatile, the author warns that Palantir’s reliance on “big‑data analytics” for government surveillance and defense could face regulatory scrutiny. Additionally, the company’s high burn rate and modest revenue growth in recent quarters may not support a dramatic upside in the near term. The article cites a linked study, “Regulatory Risks in the AI‑Analytics Space”, highlighting potential policy changes that could affect Palantir’s contracts.

3. The Two Undervalued AI Stocks

3.1. Cohere (COHR)

Cohere is a conversational‑AI startup focused on natural‑language processing (NLP). The author outlines several reasons why Cohere may surpass Nvidia and Palantir:

• Market Position – Cohere offers a more open, scalable platform for developers to build language models without incurring high inference costs. This positions it as a competitor to OpenAI’s API and Microsoft’s Azure AI services.
• Revenue Trajectory – Cohere’s SaaS model has delivered a compound annual growth rate (CAGR) of 60 % over the past two years, with a projected 7‑year horizon to $2.5 B in revenue by 2030.
• Margins – The company boasts gross margins around 85 %, thanks to a software‑centric model that minimizes hardware expenses.
• Strategic Partnerships – The article highlights Cohere’s partnership with Amazon Web Services (AWS) and the integration of its models into AWS’s AI services, giving the company a vast customer base.

A link within the article directs readers to Cohere’s “Product Roadmap” page, where it outlines upcoming releases for multimodal AI (image + text) and the expansion of its API to support industry‑specific workloads.

3.2. C3.ai (AI)

C3.ai is an enterprise AI software company that offers end‑to‑end solutions for industries such as energy, finance, and manufacturing. The article presents several arguments in favor of C3.ai:

• Enterprise Adoption – C3.ai has secured contracts with major utilities, automotive firms, and financial institutions, indicating strong demand for AI‑driven operational efficiencies.
• Revenue Growth – The company’s revenue has grown at a 30 % CAGR in recent years, with a projected CAGR of 35 % from 2025 to 2030, reaching roughly $1.8 B by 2030.
• Recurring Revenue – More than 70 % of C3.ai’s revenue comes from subscription contracts, providing a stable cash flow foundation.
• Strategic Acquisitions – The article notes the acquisition of a leading data‑integration platform that enhances C3.ai’s ability to ingest and process data across legacy systems, thereby expanding its addressable market.

Readers are directed to C3.ai’s “Investor Relations” page, which contains a detailed earnings call transcript outlining the company’s roadmap for integrating AI into supply‑chain management and predictive maintenance.

4. Comparative Valuation Analysis

The author provides a concise valuation comparison:

• Nvidia – P/E ratio ~ 80 (based on forecasted earnings), discounted cash flow (DCF) value ~$210 B.
• Palantir – P/E ratio ~ 45, DCF value ~$90 B.
• Cohere – Current P/E (N/A) but projected 7‑year forward P/E ~ 35, DCF value ~$45 B.
• C3.ai – Current P/E ~ 25, projected 7‑year forward P/E ~ 30, DCF value ~$60 B.

These figures are supplemented by a visual chart linking to the Motley Fool “AI Stock Valuations” dashboard, allowing readers to track real‑time adjustments.

5. Risk Factors and Caveats

The article does not shy away from risks:

• Execution Risk – Both Cohere and C3.ai must successfully scale their sales teams and manage production costs. A failure in product development could stall growth.
• Competitive Landscape – Google, Microsoft, and Amazon possess vast resources to build competing AI platforms, potentially eroding market share.
• Regulatory Risk – Data privacy laws and export controls on AI technology could limit certain applications, especially for enterprise software.
• Valuation Volatility – AI stocks are known for sharp price swings; investors should be prepared for significant market swings over the next five years.

An additional link leads to “Regulatory Landscape in AI: What Investors Need to Know”, which explains the evolving legal framework in the U.S. and Europe.

6. Investment Thesis and Recommendation

The author concludes that while Nvidia and Palantir currently dominate the headlines, the long‑term structural shift toward AI is creating new opportunities. Cohere’s low‑cost, high‑margin software model and C3.ai’s deep penetration into regulated industries position them as attractive long‑term bets. The recommendation is a “buy” stance for both stocks, with an emphasis on a buy‑and‑hold strategy until the companies realize their projected 2030 valuations. The article urges investors to monitor quarterly earnings, partnership announcements, and AI regulatory developments.

7. Additional Resources

The article links to several supplementary Motley Fool pieces:

• “How to Evaluate AI Companies” – a guide on key metrics.
• “The Future of Enterprise AI” – an interview with a leading AI strategist.
• “Nvidia’s Supply Chain Challenges” – a detailed case study.

These resources provide readers with deeper context for assessing the AI landscape.

In summary, the Motley Fool article argues that while Nvidia and Palantir remain high‑profile AI players, Cohere and C3.ai represent undervalued opportunities that could surpass the former by 2030, thanks to their scalable software models, strong margins, and strategic partnerships. The author presents a balanced view, highlighting both upside potential and key risks, and provides a wealth of linked resources for readers to explore the AI sector further.