The article argues Innodata is more reasonably valued and potentially a better buy than Palantir based on growth prospects and valuation, even though Palantir’s higher growth is acknowledged.

Bottom-line: Both companies could triple revenues over five years, but Innodata offers a better risk-reward and is considered the preferable buy at the time of writing.

In the short to mid term, Innodata may present a clearer path to visibility and upside given its valuation.

Disclosures note the authors’ and publication’s positions in related stocks and mention the Motley Fool Stock Advisor program.

The Motley Fool touts stock-advice content, with Palantir not among its top 10 stocks while highlighting other tech names; disclosures reveal positions in Alphabet, Amazon, Nvidia, Broadcom, and Palantir.

Overall takeaway: Both Palantir and Innodata are leveraging AI-driven data and workflow improvements to fuel growth, but investors should weigh valuation, execution risk, and growth tempo when evaluating exposure to generative AI software.

Analysts project substantial revenue growth: Palantir could reach about $8.5 billion by 2027 (roughly 44% CAGR from 2024) and potentially $14.7 billion by 2030, while Innodata could approach $649 million by 2030 with a long-term ~20% growth after 2026.

Palantir operates Gotham for government and Foundry for commercial data integration and decision support; Innodata provides AI data annotation and preparation services through microservices to help big tech ready data for AI models.

Introductory takeaway: Two AI-focused software stocks, Palantir and Innodata, could potentially more than triple revenues by 2030 as they capitalize on generative AI data preparation and data platforms for government and commercial use.