3 Stocks That Outperformed Palantir in 2025. Can They Repeat in 2026?

NEM +0.23% NEMCL 0.00% WBD +0.50% WDC +3.54%

Quick Read

• Palantir Technologies (PLTR) climbed 123% in 2025 as governments and enterprises demanded its AI-driven data analytics platforms.

• Western Digital (WDC) posted 51% revenue growth to $9.52B in fiscal 2025 by supplying high-capacity storage for AI data centers.

• Newmont (NEM) surged on gold’s soaring price with Tier 1 mines, while Warner Bros Discovery (WBD) grew HBO Max to 128M subscribers and cut debt from $38B to $35.6B.

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Palantir Technologies (NYSE:PLTR) has ridden the artificial intelligence (AI) wave with relentless force through 2025, delivering data analytics platforms that governments and enterprises can't get enough of. While Nvidia (NASDAQ:NVDA) has faltered amid chip supply shortages and valuation jitters, Palantir's momentum shows no signs of slowing -- its shares climbed nearly 123% this year.

It's one of the S&P 500's top performers, a testament to AI's sticky demand for actionable insights. Yet, three under-the-radar names -- Western Digital (NASDAQ:WDC), Newmont (NYSE:NEM), and Warner Bros Discovery (NASDAQ:WBD) -- left it behind, posting even steeper gains. But can these outperformers sustain their edge, outpacing Palantir and the broader market in 2026?

Western Digital (WDC)

Western Digital's 2025 surge came from becoming the backbone of AI's data hunger -- its hard drives and flash storage fed the insatiable needs of hyperscale data centers. As cloud giants ramped up server farms for training massive models, demand for high-capacity nearline HDDs skyrocketed, with Western Digital shipping exabytes that powered everything from generative AI to analytics workloads.

The company spun off its flash business earlier in the year, sharpening focus on HDDs while retaining a stake in the separated entity, which unlocked value and drew investor applause. Revenue jumped 51% to $9.52 billion for fiscal 2025, swinging to profitability with margins rebounding sharply and free cash flow turning positive. It's continuing the momentum in fiscal 2026, with Q1 revenue up 27% and profits rising 367%, crushing estimates.

This execution, plus innovations like UltraSMR tech for denser storage, positioned Western Digital as an AI infrastructure essential, outshining pure-play software like Palantir.

Heading into 2026, the momentum looks primed to continue if AI capex stays robust. Analysts have a "Buy" rating with average targets around $181 per share, suggesting 10% upside from its current price $163, though highs reach $250 on hyperscaler bets.

Government AI pushes and enterprise data lakes could add tailwinds, but risks include supply chain snarls or a NAND pricing slump after the spinoff. If Western Digital captures share from rivals like Seagate Technology (NYSE:STX) in AI-optimized storage -- delivering cost savings in the billions -- it could extend its hardware lead over Palantir's analytics layer.

Newmont (NEM)

Newmont rode a perfect storm in 2025: sky-high gold prices above $3,000 an ounce collided with surging demand for the metal from a surprising new corner -- AI data centers. As hyperscalers raced to buildout facilities, gold emerged as an indispensable, critical component in specific, high-reliability parts of next-gen AI chips and data center infrastructure

Newmont, already the world’s largest gold producer, cashed in on record margins while advancing its Tier 1 portfolio -- Cadillac in Canada, Tanami Expansion 2 in Australia, and Ahafo North in Ghana all hit commercial production ahead of schedule. Cost discipline kept all-in sustaining costs below $1,600 per ounce even as output climbed toward 7 million ounces annually, driving free cash flow past $4 billion and enabling $2 billion in buybacks plus a dividend yielding 1% annually.

Looking to 2026, the setup remains favorable, particularly with gold above $4,200 per ounce and if AI-driven industrial demand grows. Analysts forecast another year of $2.5 billion to $3 billion in FCF at current prices, with Nevada Gold Mines JV expansion and Yanacocha Sulfides adding low-cost ounces. Newmont’s balance sheet -- net debt is under $3 billion -- gives it flexibility for more acquisitions in a consolidating sector. The gold miner looks positioned to keep outrunning Palantir’s software gains with hard-asset leverage to the same megatrend.

Warner Bros Discovery (WBD)

Warner Bros Discovery flipped its script in 2025, turning post-merger woes into a comeback via streaming savvy and cost discipline. HBO Max's subscriber base swelled to 128 million, profitability emerged as linear TV waned, and it scored at the box office, with hits driving 23% adjusted revenue growth.

Aggressive deleveraging also shaved debt from $38 billion to $33.3 billion, while a planned corporate split teased unlocking value: one entity for studios/HBO, another for cable like CNN and HGTV. Warner Bros also benefited from takeover buzz from Paramount Skydance (NASDAQ:PSKY), Comcast (NASDAQ:CMCSA), and Netflix (NASDAQ:NFLX), which sparked hope for a bidding war.

Next year could be Warner Bros Discovery's blockbuster year, with CEO David Zaslav calling it HBO Max's "biggest growth" push through European expansion and a stacked slate, including a Gremlins reboot in 2027 and robust TV output.

Analysts target $22.47, but bids could push higher if splits or sales materialize, easing debt via asset carve-outs. Risks persist, such as regulatory snags on takeover deals, cord-cutting erosion, and $41 billion to $42 billion in revenue plateauing if streaming comps toughen. Yet, with FCF accretion and quality-over-quantity content, it might outshine Palantir's B2B grind by blending entertainment's broad appeal with profitability.

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