Billionaire Ken Griffin Buys 2 Artificial Intelligence (AI) Stocks Up 1,100% and 2,200% Since Early 2023
Billionaire Ken Griffin runs Citadel Advisors, the most profitable hedge fund in history based on net earnings, according to LCH Investments. It bought shares of two hot artificial intelligence (AI) stocks in the third quarter.
Citadel purchased 388,000 shares Palantir Technologies(NASDAQ:PLTR)A stock that is up 2,200% since January 2023.
Citadel purchased 128,100 shares Robinhood Markets(NASDAQ:HOOD)A stock that is up 1,100% since January 2023.
More importantly, even though both positions are small, investors can still learn an important lesson: Stocks that have appreciated significantly in the past can still make smart investments today. Read on to learn more about Palantir and Robinhood.
Where to invest $1,000 right now? Our analyst team just revealed what they believe to be Top 10 stocks To buy now when you join Stock Advisor. See stocks »
Image source: Getty Images.
Palantir provides analytics software to commercial businesses and government agencies. Its core products, Gotham and Foundry, integrate data and machine learning It transforms models into a decision framework called an ontology. It also provides a contiguous space. artificial intelligence (AI) platform that enables customers to build productive artificial intelligence into applications and business processes.
Morgan Stanley analysts say Palantir is emerging as the standard in enterprise AI. Actually, Forrester Research recently ranked the company as a leader in AI decision-making platforms and International Data Corp. (IDC) recognized its leadership in AI-powered source-to-pay software, a technology that helps organizations optimize supply chain management.
Palantir reported strong financial results in the third quarter, beating top and bottom line estimates. Revenue increased 63% to $1.1 billion; This was the ninth consecutive acceleration, and non-GAAP (adjusted) net income rose 110% to $0.21 per diluted share. Management also raised its full-year forecast, predicting that revenue will rise 53% in 2025.
But Palantir is trading at an incredibly expensive valuation of 96 times sales. Although down from its 137x sales peak in August 2025, the current price-to-sales ratio still makes Palantir the world’s most expensive stock. S&P 500 almost tripled. AppLovin It ranks second with 33 times sales. This means Palantir could fall 65% and still be the most expensive stock in the index.
The big picture is this: Palantir is an excellent company with attractive growth prospects. According to Grand View Research, spending on AI platforms is expected to grow at an annual rate of 38% by 2033. However, the risk-reward profile is heavily skewed towards risk because the current valuation is unsustainable. Investors should limit their exposure to this stock.
Robinhood operates an online trading platform designed for young investors. With 19 million accounts funded by millennials and Gen Zers, nearly twice as many as its next closest competitor, the company is particularly well positioned to benefit as members of those generations inherit more than $120 trillion in assets from baby boomers over the next few decades.
The impact of this transfer, which has been called the largest wealth transfer in history, is already evident to some extent. While Robinhood remains a small player in the brokerage market, it is gaining share in stocks, fixed income, options and margin trading. What’s more, its last foray into the prediction markets was wildly successful, with Robinhood reaching nearly 30% market share in just over a year.
Robinhood is also turning to artificial intelligence with Cortex, a conversational assistant that helps investors understand financial markets. It uses generative AI to summarize breaking news, analyst reports, and technical information. Robinhood recently introduced more personalized insights that connect real-time data to users’ portfolios. Cortex is only available to Gold subscribers who pay $5 per month or $50 per year.
Robinhood reported strong third-quarter financial results, with funded accounts, platform assets and net deposits reaching record levels. Revenue more than doubled to $1.2 billion, and GAAP net income more than tripled to $0.61 per diluted share. “Prediction markets are really on fire,” CEO Vladimir Tenev said, noting that trading volume has doubled every quarter since the company added the feature in late 2024.
The big picture is this: Robinhood provides access to a wide range of trading products through a mobile-first platform designed to attract younger users. As millennials and Gen Z mature, Robinhood is likely to gain market share in brokerage services. Shares look attractive at 42 times earnings, considering Wall Street expects earnings to grow at 22% annually over the next three years.
Before buying shares in Palantir Technologies, consider:
Motley Fool Stock Advisor The analyst team just determined what they believe to be Top 10 stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could deliver monster returns in the coming years.
Think about when netflix You made this list on December 17, 2004… if you invested $1,000 on the date we recommended, You would have $448,476!* Or when Nvidia You made this list on April 15, 2005… if you invested $1,000 on the date we recommended, You would have $1,180,126!*
Now it is worth noting that Stock Advisor total average return 945% — a market-beating performance compared to the S&P 500’s 197%. Don’t miss the latest top 10 list available Stock Advisorand join an investment community created by individual investors, for individual investors.
Trevor Jennewine He holds positions at Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a feature disclosure policy.
