One of the prominent stocks driven by artificial intelligence (AI) is Palantir Technologies ( PLTR 8.54%). From a low of around $6 per share at the height of the 2022 bear market, the SaaS stock 's AI tools have driven a more than 12-fold gain in the stock in two years.

The S&P 500 (SNPINDEX: ^GSPC) is up 28% this year, which is almost triple its average annual gain going back to 1957. Technology stocks are leading the S&P higher at the moment, but those operating in the artificial intelligence (AI) space are generating particularly strong gains.

Palantir Technologies (PLTR) showcases this possibility. As a market darling in artificial intelligence and data analytics, the stock has quadrupled year-to-date. Its sky-high valuation makes investors wonder whether the price is fair or a bubble.