Discover How AI is Revolutionizing These Top S&P 500 Stocks for Explosive Growth!

In a sea of giant tech stocks dominating the S&P 500, there are hidden gems that show promising potential for substantial growth driven by artificial intelligence. Let’s dive into two of them.

Palantir

1. Palantir Technologies (NASDAQ: PLTR) made its mark in the S&P 500 in September and experienced a staggering 340% surge in the previous year, with an additional 37% growth in 2025.
2. Initially catering to government organizations like the CIA and the US military, Palantir has expanded its services to support enterprises. In Q4, US commercial revenue soared by 64% year-on-year.
3. A game-changer for Palantir was the launch of their Artificial Intelligence Platform (AIP) in 2023. This platform facilitates data analysis, prediction, and decision-making for organizations across various sectors like intelligence agencies, banks, and pharmaceutical companies.
4. Although Palantir’s business results speak for themselves, the current price-to-sales ratio of 71 makes it a bit overvalued. However, once the valuation becomes more reasonable, it might be a promising addition to the portfolio.

Market cap: $236bn
Forecasted revenue for 2025: $3.8bn (32% growth)
Forward price-to-earnings (P/E) ratio: 172

Axon

1. Axon Enterprise (NASDAQ: AXON), renowned for creating the Taser stun gun, has diversified its revenue streams to include body cameras, dash cameras, drones, training solutions, and software services.
2. With a consistent track record of surpassing Wall Street’s earnings estimates by over 20% for four consecutive quarters, Axon’s stock has risen by 157% in the past year.
3. Axon stores all footage gathered in its cloud-based platform, Evidence.com, utilizing AI to develop innovative solutions for law enforcement agencies. The company even offers a subscription service bundling all current and upcoming AI products.
4. An exciting AI product in the pipeline is Draft One, which transcribes audio from body cameras into draft police reports, significantly reducing the time required to write reports.

While Axon’s stock isn’t as highly priced as Palantir’s, it’s important to consider the price-to-sales ratio of around 26. Despite the potential, a slowdown in growth or less-than-expected performance from Draft One poses a risk. However, remaining bullish on Axon seems justified with its position as a leader in AI applications for practical use.

Market cap: $50bn
Forecasted revenue for 2025: $2.6bn (23% growth)
Forward price-to-earnings (P/E) ratio: 105

In a world dominated by tech giants, these two companies are carving their paths to success through innovative AI solutions. Keep an eye on Palantir and Axon as they navigate the evolving landscape of technology and deliver value to investors and consumers alike.