Palantir vs. Super Micro Computer: Which S&P 500 Stock is a Better Buy?

The S&P 500 Index ($SPX) is among the most popular equity indices in the world. It provides you with exposure to roughly 500 of the largest companies in the U.S., which are weighted on the basis of market cap. 

The S&P 500 index is rebalanced each quarter or four times a year. In 2024, artificial intelligence (AI)-fueled tech stocks, including Super Micro Computer (SMCI) and Palantir Technologies (PLTR), were among the new entries to the flagship index. While both of these companies crushed the broader market's returns in 2023, they have experienced sharply contrasting fortunes in recent months.