Two major data companies, Palantir Technologies (PLTR) and Snowflake (SNOW), are making their own big bets on the AI boom. Both companies play key roles in modern data technology within the AI landscape. Palantir specializes in big data analytics for mission-critical government and commercial uses, while Snowflake offers cloud-based data warehousing solutions to a broader range of customers. But which of these two players offers the better upside potential right now? Let’s break it down.
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Is Palantir a Good Stock to Invest In?
PLTR stock has skyrocketed by over 105% so far in 2025, driven by growing demand for its AI-powered solutions. The company’s valuation remains sky-high, trading at a forward P/E of 242.37 versus the sector average of 23.47, raising doubts about whether its price truly matches growth prospects. Recently, renowned short-seller Andrew Left of Citron Research said that Palantir’s valuation ratios are “absurd.”
Still, many investors are willing to pay the premium, citing its deep government ties and expanding, high-margin commercial business. In reality, the rally seems driven more by AI excitement than traditional fundamentals.
Turning to Wall Street, analysts’ views on Palantir remain mixed. While some analysts lifted price targets after strong Q2 results, many still maintain Hold ratings. For instance, Wedbush’s Dan Ives reiterated his Buy rating on PLTR stock and named Palantir a top tech pick for 2025, calling the quarter a ‘blowout.’ In contrast, RBC’s Rishi Jaluria kept a Sell rating, citing an unfavorable risk-reward.
Is SNOW a Good Stock to Buy Now?
Unlike Palantir’s government-heavy business model, Snowflake is more broadly focused on the enterprise cloud data market. This distinction makes Snowflake less reliant on federal contracts but more exposed to enterprise IT spending trends, creating a different set of risks and opportunities for investors.
Last week, SNOW stock grabbed the spotlight, surging nearly 20% following a strong beat-and-raise quarter. The stock hit a fresh 52-week high of $249.90 with the company topping both sales and earnings expectations for Q2 FY26. For Q3, the company projects product revenue between $1.125 billion and $1.13 billion, topping the earlier high-end estimate of $1.04 billion.
Looking ahead, analysts remain bullish on Snowflake, citing strong consumption trends and powerful AI tailwinds. Notably, Piper Sandler’s Brent Bracelin lifted his target from $215 to a Street-high $285, pointing to rising confidence in Snowflake’s new AI product roadmap. He believes this strategy could resonate with large enterprises, supporting a solid growth trajectory into 2026–2027.
SNOW or PLTR: Which Stock Offers Higher Upside, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared SNOW and PLTR to see which AI stock analysts favor. SNOW stock carries a Strong Buy rating with a potential upside of nearly 11% from current levels. On the other hand, PLTR stock has a Hold consensus rating among analysts with a price target of $154.47, implying a 1.43% downside.
Conclusion
Palantir offers long-term growth potential with its focus on AI, while Snowflake attracts investors with steady recurring revenue and strong cloud exposure. Meanwhile, Palantir gets mixed views from Wall Street, while Snowflake enjoys relatively steadier analyst support. In the end, choosing between PLTR and SNOW depends on whether you value Palantir’s AI growth or Snowflake’s cloud strength.