AI stocks have pulled back recently, and investors are looking for better entry points. Palantir (PLTR) and Snowflake (SNOW) are two key names in the space, but they offer very different investment cases. Palantir is already profitable and growing fast, while Snowflake is still investing heavily and remains loss-making.
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Notably, PLTR stock is down about 34% from its all-time high, while SNOW stock has dropped more than 41% from its November 2025 peak. With both stocks trading well below their highs, we use TipRanks’ comparison tool to see which one may offer the better opportunity today.
Earnings and Growth Snapshot
The biggest difference between Palantir and Snowflake is simple. Palantir is making strong profits, while Snowflake is still reporting losses.
Palantir reported about $1.63 billion in profit for 2025, showing that its business is now highly profitable. Its U.S. commercial segment also saw strong demand, with revenue growing 137% in the latest quarter.
In contrast, Snowflake generated higher total revenue of about $4.68 billion but reported a net loss of $1.33 billion. While revenue is growing at a solid 29%, the company has yet to turn that growth into profit.
PLTR’s Rich Valuation Raises Risk
Palantir trades at very high valuation levels compared with most software peers. It has a forward P/E of over 230, far above the sector median of around 31. This shows investors are paying a premium for its strong earnings and future growth. However, this leaves little room for error. Even solid growth may not be enough to support the stock if earnings slow or expectations reset.
On the other hand, Snowflake is trading at lower levels after a weak run. Since it is still reporting a loss of about $1.33 billion, it does not have a P/E ratio. Its price-to-sales ratio has also declined, making the stock cheaper than before.
Wall Street’s Take on Palantir
Despite its massive profitability, analysts are split on Palantir due to its high valuation. Wall Street has a Moderate Buy consensus on PLTR stock, with 14 Buys, four Holds, and two Sells in the past three months. At $194.61, the average Palantir stock price target implies a 41.48% upside risk.
Bullish analysts like Dan Ives from Wedbush have called Palantir the “Messi of AI,” citing its 137% explosion in U.S. commercial revenue. They believe the company’s “AIP” platform is the standard for enterprise AI. However, some analysts caution that the stock is “priced for perfection.”
Wall Street’s Take on Snowflake
SNOW stock carries a Strong Buy consensus, with 31 Buys and three Holds. At $238.55, the average SNOW stock price target implies a 55.24% upside risk.
Bulls highlight Snowflake’s $9.77 billion in remaining performance obligations (RPO), which reflect strong future revenue potential. They believe this is not fully reflected in the current stock price.
At the same time, concerns remain around leadership changes and the lack of GAAP profitability. Still, with the stock near multi-year lows, many investors see 50% to 60% upside if the company turns profitable.
Conclusion
Palantir offers strong profits and steady growth but trades at a high valuation. Meanwhile, Snowflake is still loss-making but looks cheaper and offers higher upside if it turns profitable.
In short, Palantir is the safer choice, while Snowflake offers more upside with higher risk.
