Despite the strong outlook for the industry, Wall Street analysts only expect one of these enterprise-software leaders to keep climbing higher over the next 12 months. Palantir has a median-price target of $38 per share, based on the estimates of 22 analysts. That implies a downside of 30% from its share price, as of this writing.

Palantir Technologies (PLTR) and SoundHound (SOUN) stocks have delivered jaw-dropping returns in 2024. PLTR stock has surged about 242% year-to-date, and SoundHound has outpaced it with a staggering 258% gain.

Palantir 's (NYSE: PLTR) stock hit a record high of $51.13 on Nov. 5. Its 223% year-to-date rally was driven by its accelerating revenue growth, soaring profits, and its inclusion in the S&P 500. The buying frenzy in AI stocks,

Over the past 12 months, Palantir's stock has soared more than 170% as Microsoft's stock rose by less than 20%. Let's see why Palantir outperformed Microsoft by such a wide margin -- and if it's still the better AI stock for growth-focused investors.