Palantir is a buy that has further to run, and other takes on AI plays

Mainstay Capital Management CEO David Kudla recommends Palantir and Constellation Energy as buys, citing Palantir's AI leadership in government contracts and Constellation's benefit from nuclear deregulation driven by AI data center energy demands; he suggests holding Salesforce due to increasing competition from Microsoft in AI-integrated CRM and workflow software, despite recent positive earnings.

Analysis

David Kudla, CEO of Mainstay Capital Management, identifies Palantir (PLTR) and Constellation Energy (CEG) as buy-rated stocks poised to benefit from the artificial intelligence boom, while designating Salesforce (CRM) a hold due to escalating competition. Palantir, despite a significant 64% surge in 2025 and trading around $124 per share (up from Kudla's $15 entry in June 2023), is viewed as a continued buying opportunity, especially on price dips. This optimism stems from Palantir's effective AI leverage, its dominant position in AI applications for government counterterrorism, and expanding commercial contracts, suggesting further growth potential despite a rich valuation. Constellation Energy, the largest U.S. nuclear operator, is highlighted as a direct beneficiary of government support for nuclear power, underscored by recent executive orders aimed at deregulating and streamlining the Nuclear Regulatory Commission. These measures are anticipated to facilitate nuclear energy growth to meet the substantial energy demands of AI data centers; the stock has already surged 38% in May following Kudla's purchase at the end of March. Conversely, Salesforce is considered a hold, primarily due to intense competition from Microsoft in the AI-disrupted CRM and workflow software market. Although Salesforce reported 7% year-over-year growth, better-than-expected fiscal Q1 results, and improved forward guidance (leading to a 1.6% postmarket gain), its stock is down over 17% year-to-date, reflecting concerns about its competitive positioning against offerings like Microsoft Copilot.

Key Decisions for Investors

• Investors may consider Palantir (PLTR) a strategic buy, particularly on pullbacks, recognizing its strong AI-driven growth in government and commercial sectors, despite its current high valuation.
• Constellation Energy (CEG) presents a compelling case for investment due to favorable regulatory tailwinds for nuclear power and increasing energy demand from AI data centers, though its recent rapid appreciation warrants careful entry point consideration.
• For Salesforce (CRM) investors, a hold strategy is advised; closely monitor its ability to effectively integrate AI and compete with Microsoft, given its slower growth trajectory and recent stock underperformance despite positive Q1 results and guidance.