These AI Stocks Posted Robust Results: Time to Buy?

Earnings season continues to move rapidly, with many companies unveiling quarterly results daily. So far, the period has been positive, though it’s worth noting that estimates for the current period (Q2) have fallen in recent weeks.But throughout the Q1 cycle so far, several companies deeply involved in the AI frenzy – Palantir PLTR and Tempus AI TEM – posted results that had investors pleased, with each seeing bullish post-earnings reactions.Let’s take a closer look at each report.PLTR Again Posts Stellar ResultsPalantir continued to fire on all cylinders throughout its latest period, with the company again experiencing serious growth. Sales shot 39% higher year-over-year, with the company also raising its current year sales outlook in a big way.As shown below, the company’s sales growth has been outstanding over recent periods, a reflection of the red-hot demand PLTR has been enjoying.Image Source: Zacks Investment ResearchNotably, customer count grew nearly 40% year-over-year and 8% sequentially. Palantir also booked its highest U.S. commercial total contract value throughout the period ($810 million), which grew a staggering 180% year-over-year.The favorable U.S. contract performance helped drive the 55% year-over-year climb in its U.S. revenue, with U.S. commercial and government revenue improving by 71% and 45% year-over-year, respectively.Analysts have already revised their current year sales expectations for the stock following the release, with the current $3.9 billion Zacks Consensus estimate up nearly 20% over the last year. The company’s sales are now forecasted to climb 37% following the updated guidance, continuing its growth trajectory nicely.Image Source: Zacks Investment ResearchTempus AI Sales Surge HigherTempus AI is a technology company leading the adoption of AI to advance precision medicine and patient care. Like PLTR, the company enjoyed serious growth, with sales of $255.7 million climbing 75% year-over-year.Below is a chart illustrating the company’s sales on a quarterly basis.Image Source: Zacks Investment ResearchMargin improvement also led to notable benefits, with quarterly gross profit of $155.2 million doubling from the year-ago period. Adding to the positivity, the company also announced multi-year collaborations with AstraZeneca and Pathos, which are expected to result in roughly $200 million in data licensing and model development fees over the next three years.Notably, its Genomics segment saw its sales grow 90% year-over-year, with its Data and services revenue of $61.9 million up 43.2% from the same period last year. And to top off the robust results, the company increased its FY25 revenue guidance to roughly $1.3 billion, reflecting a massive 80% growth rate year-over-year.Shares saw a nice boost post-earnings, with TEM shares up nearly 50% overall just over the past month.Image Source: Zacks Investment ResearchBottom LineWe continue to wade through the 2025 Q1 cycle, which has overall been positive. Growth has been strong, though it’s critical to note that tariff concerns have caused downward pressure on earnings estimates for the current (Q2) and coming periods.Still, several AI-related stocks have posted robust results throughout the period, a list that includes Palantir PLTR and Tempus AI TEM.Given these results, both stocks reflect great opportunities to ride the artificial intelligence frenzy, a theme that’s likely just in its early innings. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palantir Technologies Inc. (PLTR): Free Stock Analysis Report Tempus AI, Inc. (TEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks