One is a more durable and diversified business, trading at a more attractive valuation, making it the clear winner.

Alphabet ( GOOGL -0.16% ) ( GOOG -0.04% ) and Palantir Technologies ( PLTR -7.29% ) two obvious artificial intelligence (AI) beneficiaries. Alphabet's shares have climbed as the company integrates new AI features into Google and YouTube, while Palantir has rallied on accelerating growth as it benefits from "the astonishing impact of AI leverage," as Palantir's Alex Karp put it in the company's second-quarter earnings call.

The two businesses, however, couldn't be more different. Alphabet is the parent of Google, YouTube, Google Cloud, and Gmail (among other digital properties), making most of its money from advertising and a growing sum from cloud com

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