Alex Karp Grouped Palantir With These 3 Unstoppable Stocks as the Only True Artificial Intelligence (AI) Infrastructure Winners
Adam Spatacco, The Motley Fool
Fri, July 17, 2026 at 2:35 AM GMT+5:30
5 min read
Palantir Technologies (NASDAQ: PLTR) CEO Alex Karp recently highlighted a small cohort of companies as the true standouts of the artificial intelligence (AI) infrastructure build-out. He placed Palantir alongside Nvidia (NASDAQ: NVDA), Micron Technology (NASDAQ: MU), and SK Hynix (NASDAQ: SKHY) as the only names that truly matter in this new era
Admittedly, this list feels mismatched upon first glance. Nvidia supplies the GPUs that train and run AI models, while Micron and SK Hynix dominate the memory side of the equation. Palantir sits further downstream, providing the software layer that turns raw data into actionable intelligence
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
What could tie these four different businesses together? The answer is a single financial benchmark that reveals how each company is delivering both rapid growth and expanding profitability at the same time
What is the Rule of 40?
The Rule of 40 is a simple yet useful tool for assessing whether a high-growth technology company is building a durable business. It is calculated by adding a company’s annual revenue growth rate to its operating profit margin
As a rule of thumb, a sum above 40 is considered the threshold at which growth and profitability reinforce each other rather than compete. This means companies that clear this hurdle can feasibly reinvest in the business while still generating healthy bottom-line results
Throughout the AI revolution, Palantir’s Rule of 40 score has climbed exponentially. During the first quarter of 2025, the company’s Rule of 40 score was 83%. One year later, it soared to 145%
The improvement comes from two reinforcing trends. First, Palantir’s revenue is accelerating as more commercial customers adopt its Artificial Intelligence Platform (AIP). Second, operating margin is expanding because the company can spread its fixed development and sales costs across a larger, growing revenue base. This means that new customers add incremental revenue with relatively little extra cost, improving profitability in tandem with sales growth
This virtuous cycle is exactly what the Rule of 40 is designed to capture, and Palantir’s consistent progress proves the company is executing on both fronts at once
