Alphabet (GOOGL 0.66%) (GOOG 0.77%), the parent company of Google, continues to rely heavily on artificial intelligence (AI) and machine learning. AI supercharged Google's self-proclaimed mission to "organize the world's information and make it universally acceptable and usable," keeping it ahead of the competition. Hence, the technology deserves some credit for its $1.3 trillion market cap.

And investors can still find AI-driven opportunities in smaller growth stocks with huge potential. For those who feel they missed out on the Alphabet growth story, they might want to take a closer look at Palantir Technologies (PLTR -0.34%).

Palantir and AI

Palantir is a company geared not so much toward data but toward delivering insights. Its most famous insight came with helping the CIA find Osama bin Laden. Big data companies such as Alteryx, which emphasizes data presentation, or Snowflake, which manages and stores data, don't offer this.

Its core technology is Palantir Apollo, a software-as-a-service (SaaS) application that helps build, deploy, and secure software platforms in one or many environments. It also supports two Palantir operating systems: Palantir Gotham, which delivers insights on military and law enforcement-related challenges, while Palantir Foundry applies this knowledge to opportunities in the commercial sector.

Palantir describes AI as "technology in search of a problem," but it still manages to find applications for this capability. One application involves applying its models to an end-to-end infrastructure. It can create what it calls micro models to resolve smaller issues and link its models to determine larger-scale solutions. This allows Palantir to perform analyses on one part of a system without compromising an overall work flow.

Furthermore, AI can build models on a secure data foundation. That approach ensures both data integrity and the ability to relate and apply data to the problem at hand.

Palantir's stock and financials

But despite this potential, the SaaS stock has fallen by more than 80% from its early 2021 high. It is not just the technology bear market and the uncertain path to profitability that weighed on the stock. The limited potential clientele in the military and law enforcement area led to an increased emphasis on commercial customers.

But cost sensitivity could become a more significant issue. A Foundry subscription costs $1 million per month plus additional fees on Amazon's AWS Marketplace. This massive cost could lead many business clients to minimize their use of the software, bringing uncertainty to its commercial revenue streams.

The stock decline took its market cap down to $17 billion. This makes it less than 2% of Alphabet's size, giving investors a chance to buy while the stock is barely in large-cap territory.

Also, the $919 million revenue for the first half of 2022 was a 28% increase year over year. While that slightly lags the 41% revenue increase in 2021, it keeps it in line with the company goal of 30% annual revenue growth through 2025.

Moreover, commercial revenue was up 46% in the second quarter, and its commercial customer count surged 250% during that time. This could mean the cost of Foundry could be less of an issue than many fear.

And it supports a price-to-sales (P/S) ratio of 9. Although it is still well above Alphabet's P/S of 5, Palantir's sales multiple is near all-time lows. Assuming revenue growth stays on target, this valuation could signal a buying opportunity.

Palantir is a likely second chance at AI-driven growth

Palantir's focus on delivering insight means AI plays a crucial role in producing results for its customers. Admittedly, the need to switch its emphasis from government to commercial customers brings uncertainty, and investors might not regard its continuing losses positively in a bear market.

It also remains unclear whether the stock has finally bottomed out. But the revenue growth on its commercial side shows the company gaining traction with its business customers. With Palantir on track to maintain ambitious revenue goals, a position in this company could deliver outsize returns as economic conditions improve.