Few stocks have sizzled as much as Palantir Technologies(NASDAQ: PLTR) over the last 12 months. Shares of the data analytics software provider more than quadrupled during the period. Palantir stock is up more than 40% year to date.
However, Palantir isn't anywhere near the top of the list of stocks I think will be the biggest winners for investors over the long run. And some of those stocks could outperform through the rest of this decade, too. I predict three stocks will be worth more than Palantir five years from now.
1. Intuitive Surgical
Intuitive Surgical's (NASDAQ: ISRG)market cap is roughly $70 billion smaller than Palantir's right now. But I suspect the tables could be turned in the not-too-distant future.
Granted, Palantir is growing more rapidly. However, Intuitive Surgical continues to deliver impressive growth, too. The robotic systems pioneer's revenue jumped 19% year over year in the first quarter of 2025. Procedure volume for Intuitive's da Vinci robotic systems should increase by 15% to 17% this year.
Importantly, Intuitive Surgical looks like a bargain compared to Palantir. Sure, Intuitive's shares trade at a sky-high forward price-to-earnings ratio of 68. That seems almost cheap, though, when stacked up against Palantir's nosebleed forward earnings multiple of 196.
What I like most about Intuitive Surgical is the high probability of strong future growth. Around 2.7 million procedures were performed using da Vinci last year. Intuitive estimates roughly 8 million procedures are done annually for which it already has products and clearances. The company is targeting approximately 22 million soft-tissue procedures with products and clearances under development.
Image source: Intuitive Surgical.
2. Alibaba Group
Alibaba Group (NYSE: BABA) is already somewhat larger than Palantir. Based on the two companies' recent revenue growth, though, some might think this dynamic could change relatively soon. I predict, though, that Alibaba will widen its market cap gap over Palantir over the next five years.
Valuation plays a big factor in my projection. We've already seen how mind-blowingly high Palantir's forward earnings multiple is. Meanwhile, Alibaba's shares trade at only 12.5 times forward earnings. The company's growth prospects make its valuation look even more attractive: Alibaba's price-to-earnings-to-growth (PEG) ratio based on analysts' five-year earnings projections is a low 0.71.
Artificial intelligence (AI) demand could serve as a bigger tailwind for Alibaba than it will for Palantir. Alibaba's AI-related product revenue has grown by triple-digit percentages for six consecutive quarters. Its cloud business is also directly benefiting from AI.
Could my prediction about Alibaba be wrong? Maybe. If it is, the most likely culprit that limits the company's growth could be the Chinese government. However, assuming Alibaba is allowed to meet customers' needs relatively unfettered, it should remain bigger than Palantir by the end of the decade.
3. Alphabet
You might wonder why Google parent Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL) is on the list. After all, the tech giant is over 7x bigger than Palantir right now. It seems to be a no-brainer that Alphabet will still be larger in five years.
However, I included Alphabet because there's rampant pessimism about the company. Some have proclaimed that generative AI presents an "existential threat" to Google Search. Google has lost two major antitrust lawsuits. One potential outcome is that the business could be broken up.
I don't buy into the gloom and doom surrounding Alphabet, though. I'm confident that it will continue to thrive despite these challenges.
AI, including generative AI, is helping Google a lot more than it's hurting. Google Cloud's business is booming as customers develop generative AI apps in the cloud. AI Overviews in Google Search have increased search usage and customer satisfaction. I expect Alphabet's revenue will grow as it rolls out more agentic AI capabilities.
What about the antitrust rulings? Admittedly, they could present problems for Alphabet. However, it will almost certainly take years for a final resolution. Alphabet could ultimately prevail. Even if not, the remedies the company is forced to make might not be too terribly bad.
Regardless, I'd rather own shares of Alphabet over the next five years than I would Palantir.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Alphabet and Intuitive Surgical. The Motley Fool has positions in and recommends Alphabet, Intuitive Surgical, and Palantir Technologies. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
