How Ken Griffin's Latest Bets Showcase Two Soaring AI Stocks That Topped 1,000% Gains Since 2023

Ken Griffin, the founder and CEO of Citadel Advisors—historically the most profitable hedge fund based on cumulative net gains—recently revealed his portfolio moves in the third quarter. Among his most intriguing positions: two artificial intelligence plays that have delivered extraordinary returns. These stocks highlight an important investment principle: massive historical gains don’t necessarily signal an end to future opportunity.

In Q3, Citadel accumulated 388,000 shares of Palantir Technologies (NASDAQ: PLTR), a company whose stock has surged approximately 2,200% since the start of 2023. Additionally, the hedge fund invested 128,100 shares of Robinhood Markets (NASDAQ: HOOD), which has climbed roughly 1,100% in the same timeframe. While each position represents only a fraction of Citadel’s total portfolio, the moves underscore why these names continue attracting institutional capital.

Palantir Technologies: From Niche Data Platform to Enterprise AI Standard

Palantir has evolved significantly from its origins as a specialized analytics software provider for government agencies and commercial enterprises. The company’s flagship products, Gotham and Foundry, combine data integration with machine learning capabilities into a decision-making framework called an ontology. More recently, Palantir has launched an adjacent artificial intelligence platform enabling customers to embed generative AI throughout their operations and applications.

Industry recognition has been swift. Morgan Stanley’s research team identifies Palantir as the emerging standard in enterprise AI deployments. Forrester Research ranked the company as a leader in AI decisioning platforms, while the International Data Corporation (IDC) acknowledged its leading position in AI-enabled source-to-pay solutions—technology that streamlines enterprise supply chains. These endorsements validate Palantir’s competitive positioning in a crowded field.

The company’s financial trajectory supports this narrative. Third-quarter results exceeded expectations on both revenue and profitability metrics. Revenue grew 63% year-over-year to $1.1 billion, marking the ninth consecutive quarter of accelerating growth. Adjusted net income jumped 110% to $0.21 per diluted share. Management’s confidence translated into action: full-year guidance was raised, projecting 53% revenue growth throughout 2025.

However, valuation presents a significant consideration. Palantir currently trades at 96 times sales—a stretched multiple even by high-growth standards. Though this reflects a decline from the peak valuation of 137 times sales reached in August 2025, the current ratio remains extraordinary. Palantir commands the highest price-to-sales premium in the S&P 500, nearly triple that of the second-place company (AppLovin at 33 times sales). Mathematically, the stock could fall 65% and still maintain the most expensive valuation in the index.

The paradox is instructive: Palantir represents a genuinely exceptional business operating in a sector projected to expand at 38% annually through 2033, according to Grand View Research forecasts. Yet the risk-reward balance tilts dangerously toward risk when entry valuations are this elevated. Cautious investors should carefully limit exposure to this position.

Robinhood Markets: Youth Demographics and Expanding Trading Ecosystems

Robinhood operates a mobile-first trading platform engineered specifically for younger investors. The company has accumulated 19 million funded accounts, disproportionately composed of millennials and Gen Z participants—nearly double its nearest competitor. This demographic advantage positions Robinhood to capitalize on an unprecedented wealth transfer, with over $120 trillion expected to flow from Baby Boomers to younger generations over the coming decades.

Though still a smaller competitor in the broader brokerage landscape, Robinhood has gained meaningful market share across equities, fixed income, options, and margin trading. A particularly striking success has emerged in prediction markets. Since launching this feature in late 2024, Robinhood captured approximately 30% of the prediction market share within roughly one year—a testament to platform execution.

The company is leaning into artificial intelligence through Cortex, a conversational AI assistant designed to demystify financial markets for retail investors. Cortex leverages generative AI capabilities to synthesize real-time news, equity research, and technical analysis into digestible summaries. Robinhood recently expanded Cortex with more granular, portfolio-specific insights that connect market data directly to individual user holdings. The feature remains exclusive to Robinhood’s premium Gold tier ($5 monthly or $50 annually).

Financial performance validated this product expansion. Third-quarter results shattered expectations across multiple dimensions. Funded accounts, platform assets, and net deposits all reached record highs. Revenue doubled to $1.2 billion while GAAP net income more than tripled to $0.61 per diluted share. CEO Vladimir Tenev highlighted momentum in prediction markets, noting that quarterly trading volumes have consistently doubled since the feature’s 2024 introduction.

From a valuation standpoint, Robinhood presents a more balanced risk-reward dynamic compared to its peer. The stock trades at 42 times earnings—a reasonable premium when Wall Street anticipates earnings growth of 22% annually over the next three years. As millennials and Gen Z mature and accumulate wealth, Robinhood’s mobile-first infrastructure and broad product ecosystem position the company to expand its market penetration in brokerage services.

The Broader Investment Lesson

Ken Griffin’s moves underscore a fundamental investment reality: past performance, whether positive or negative, doesn’t determine future potential. Both Palantir and Robinhood have delivered extraordinary returns since early 2023, yet each company operates in distinct competitive and valuation environments. One faces valuation headwinds that warrant caution; the other appears reasonably priced relative to growth prospects. Sophisticated investors like Griffin evaluate each situation on its individual merits rather than simply chasing historical momentum.