Palantir Technologies is among the leaders in the artificial intelligence (AI) software market, and has experienced terrific revenue and earnings growth over the past couple of years. As a result, its stock has been flying higher. But the problem is that its shares are now trading at expensive levels. There's a large amount of hoped-for future growth baked into the stock price.

That's why investors seeking strong returns in that AI niche may be looking for alternative plays. Snowflake ( SNOW +1.83% ) appears to be one that could outperform Palantir in 2026.

Snowflake's data platform is getting an AI-powered boost

Snowflake operates a cloud-based data warehouse platform. Its clients can not only store their proprietary data on its systems, but also use that data to build apps,

See Full Page