Nvidia(NASDAQ: NVDA) CEO Jensen Huang and his wife Lori recently attended the groundbreaking of a new research facility they helped finance (and which will be named in their honor) at the couple's alma mater, Oregon State University (OSU). In a subsequent discussion with OSU president Jayathi Murthy, Huang said, "We're at the beginning of a new industrial revolution."
He went on to say that during this period, we're "manufacturing" artificial intelligence (AI).
One company has already kicked its production into high gear. If Huang is right, this company stands to benefit from the AI "revolution."
Palantir's boot camps
Palantir Technologies(NYSE: PLTR) has decades of experience with AI, which enabled the company to quickly develop generative AI tools that businesses can actually use. The result was its Artificial Intelligence Platform (AIP), which helps businesses develop AI-powered solutions to real-world problems.
To get to the heart of these issues, Palantir hosts boot camps. These consist of "immersive, hands-on-keyboard sessions [that] allow new and existing customers to build live alongside Palantir engineers, all working toward the common goal of deploying AI in operations." This process helps businesses "go from zero to use case in just one to five days." Palantir says there's a "growing backlog of AIP boot camps due to the overwhelming demand."
Back in October, the company set an internal goal of conducting 500 AIP boot camps in 2024. However, demand was so great it blew through 560 boot camps for 465 organizations in just four months, and the backlog for attendance is growing.
The full impact of these boot camps has yet to appear in Palantir's financial results as it continues to ramp up to meet the unprecedented demand. The company's U.S. commercial revenue, its fastest-growing segment, surged 70% year over year, thanks to AIP. Furthermore, the segment is expected to generate "at least" 40% growth this year.
By some metrics, the valuation might appear steep. However, when measured using the forward price/earnings-to-growth (PEG) ratio -- which factors in Palantir's accelerating growth -- it sports a multiple of less than 1, suggesting an undervalued stock. That makes Palantir stock a buy.
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Danny Vena has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.
