We recently compiled a list of the 10 High Flying AI Stocks This Week. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against the other AI stocks.

Celestial AI™, creator of the Photonic Fabric™ optical interconnect technology platform, recently announced that it has raised an additional $250 million in venture capital, bringing its total raised to date to $515 million. The AI startup is working hard to crack a key speed constraint in artificial intelligence. Recently, it has tapped photonics, a technology that uses light in order to create speedy links between AI computing chips and memory chips.

The Series C1 funding round was led by Fidelity Management & Research Company, with new investors including funds and accounts managed by BlackRock, Maverick Silicon, Tiger Global Management and Lip-Bu Tan, as well as participation from existing investors including AMD Ventures, and Koch Disruptive Technologies (KDT), to name a few.

READ ALSO: 10 AI Stocks Trending On Wall Street Right Now and 12 AI Stocks Making Headlines: Latest News and Ratings

The photonic-based technology Celestial AI uses improves memory bandwidth, a key factor in AI performance. Currently, Nvidia reigns supreme in memory bandwidth due to its proprietary technologies called NVLink and NVSwitch. However, Celestial AI, like several other chip firms, is striving to come up with alternatives.

Celestial AI is developing a technology that can sit like a bridge between two or more chips, leveraging a different kind of photonics technology than its competitors. According to Celestial AI CEO Dave Lazovsky, the goal of this "photonic fabric, is to offer speed while saving space and power.

"There are no good answers right outside of Nvidia. What we had created with the photonic fabric does the same thing, but at a different level of energy efficiency and of latency."

- Celestial AI CEO Dave Lazovsky

The Photonic Fabric technology by Celestial AI is fully compatible with industry standard manufacturing and 2.5D packaging processes. Through this funding, the company will be able to expand and qualify its volume manufacturing supply-chain to serve customer demand.

"Celestial AI’s Photonic Fabric is fundamentally transforming AI computing, networking and memory solutions by addressing critical infrastructure challenges with unmatched performance and energy efficiency. I have witnessed the innovative potential of their technology to unlock new capabilities and as a member of the Board of Directors, am proud to be on the Celestial AI team as they commercialize their ground-breaking Photonic Fabric platform.”

-Diane Bryant, Independent Director at Celestial AI and Broadcom Inc.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points  (see more details here).

A software engineer intently typing code into a laptop with multiple screens in an office.

Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 64

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On March 10, it was announced that the company is expanding its partnership with Voyager Technologies (Voyager), a global leader in defense technology and space solutions. The partnership aims to develop AI-powered solutions for enhanced Space Domain Awareness, thereby facilitating the proactive mitigation of potential collisions and threats.

The system will integrate Voyager's VPX signal processing electronics and chassis, signals intelligence software and mission services capabilities, along with Palantir's AI/Machine-Learning engines, to enable space-based object detection, identification, classification and tracking. Palantir's AI capabilities will allow Voyager to enhance its defense and national security solutions.

"We are deepening our partnership with Voyager to deliver the transformative capabilities required to maintain our national security. We are further extending the reach of our AI solutions from ground to space, a critical frontier where demands are intensifying as the environment grows increasingly contested."

-Robert Imig, Head of USG Research and Development at Palantir.

Overall PLTR ranks 6th on our list of the high flying AI stocks this week. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

 

Disclosure: None. This article is originally published at Insider Monkey.