Ace investor and fund manager, Cathie Wood, is doubling down on Palantir Technologies Inc. (NASDAQ:PLTR), reaffirming her confidence in the company’s ability to lead the enterprise AI race, as shifting market dynamics disrupt established players in this space.
What Happened: On Saturday, the Ark Invest CEO quoted a post on X by Brett Winton, the firm’s chief futurist, who simply wrote, “Excel. Will. Die.” The post predicts the eventual downfall of Microsoft Corp.’s (NASDAQ:MSFT) widely used spreadsheet software, which has been a mainstay in office environments for decades.
See More: Palantir Stock Soars On Defense Deals: What’s Going On?
In response to the post, Wood questioned how Microsoft and its enterprise clients would navigate the “massive disruption,” before saying, “Palantir comes to mind.”
According to Wood, Palantir CEO Alex Karp believes that the company will become the largest pure-play enterprise AI software company in the world, “I believe him,” she says.
Why It Matters: Palantir is now Ark Invest’s second-largest holding after Tesla, with a stake valued at $640 million, representing about 7% of its total assets under management across its family of funds.
Microsoft has made significant headway in enterprise AI, with the segment already sporting a $13 billion annual run rate, a figure that is nearly 5 times Palantir’s annual revenue in 2024. However, the latter is gaining ground rather quickly and is already pulling ahead in sectors such as defense.
While Microsoft continues to pursue cloud dominance, Palantir is inking partnerships with major defense contractors and is in the process of building a futuristic AI-powered tank.
| Stock / ETF | YTD Performance |
| Microsoft Corp. (NASDAQ:MSFT) | -6.39% |
| Palantir Technologies Inc. (NASDAQ:PLTR) | +49.99% |
| Ark Innovation ETF (BATS:ARKK) | -10.35% |
| Ark Space Exploration & Innovation ETF (BATS:ARKX) | -4.89% |
Palantir scores remarkably well on Benzinga’s Stock Edge Rankings, with a strong price trend in the short, medium, and long terms, but how does it compare with Microsoft? Sign up for Benzinga Edge to find out.
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