Arguably, no AI stock has been hotter since the beginning of 2023 than Palantir Technologies (PLTR), with its shares skyrocketing by more than 2,900%. In terms of market cap, Palantir vaulted from a tech stock of fringe importance to the 19th-largest publicly traded company on Wall Street, as of the closing bell on Dec. 19.
Although Palantir’s shareholders would love for this parabolic ascent to extend into 2026, history suggests this is highly unlikely. No megacap company at the forefront of a next-big-thing technological trend has ever been able to sustain a price-to-sales (P/S) ratio above 30 for any extended length of time. Palantir ended last week at a P/S ratio of approximately 127!
With historical precedent pointing to a rough 2026 for Palantir, the following three unstoppable stocks all have the tools and intangibles necessary to leapfrog it in the market cap column.
This post originally appeared at The Motley Fool.