Wall Street is paying close attention after billionaire hedge fund manager Ken Griffin quietly made fresh moves into the artificial intelligence space. Griffin is the founder and CEO of Citadel Advisors, which LCH Investments ranks as the most profitable hedge fund in history based on net gains.
During the third quarter, Citadel initiated new positions in two AI-focused companies that have already delivered extraordinary gains since early 2023.
Citadel purchased 388,000 shares of Palantir Technologies, a stock that has surged roughly 2,200% since January 2023. The firm also bought 128,100 shares of Robinhood Markets, which has climbed about 1,100% over the same period.
While these positions represent a small portion of Citadel’s overall portfolio, they send a clear signal: Griffin still sees long-term opportunity in AI leaders even after massive price appreciation. The move challenges the common belief that stocks with huge past gains are no longer worth buying.
Why Palantir Is Emerging as an Enterprise AI Powerhouse
Palantir sits at the center of enterprise and government AI adoption. Its flagship platforms — Gotham and Foundry — allow organizations to combine large data sets with machine-learning models inside a structured decision framework known as an ontology.
The company’s Artificial Intelligence Platform (AIP) takes this further by enabling customers to embed generative AI directly into applications and operational workflows.
Major research firms have taken notice.
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Morgan Stanley says Palantir is emerging as a standard platform for enterprise AI.
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Forrester recently named the company a leader in AI decisioning platforms.
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IDC recognized Palantir for leadership in AI-enabled source-to-pay software.
Financial results continue to reinforce that narrative.
In the third quarter, Palantir reported:
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Revenue: $1.1 billion (+63% YoY)
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Non-GAAP EPS: $0.21 (+110% YoY)
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Growth streak: 9th consecutive quarter of accelerating revenue
Management also raised full-year guidance, projecting 53% revenue growth in 2025.
However, valuation remains the biggest concern.
Palantir trades at 96× sales, down from a peak of 137× in August 2025. Even after this pullback, it remains the most expensive stock in the S&P 500 by a wide margin. According to Grand View Research, global spending on AI platforms could grow 38% annually through 2033, but the company’s valuation leaves little room for disappointment.
Robinhood Is Riding the AI-Powered Wealth Transfer
Robinhood has built its platform around a new generation of investors.
The company now serves 19 million funded accounts, primarily millennials and Gen Z — nearly double the number held by its closest competitor. This demographic advantage positions Robinhood to benefit as younger investors inherit more than $120 trillion from baby boomers over the coming decades — often called the largest wealth transfer in history.
Robinhood continues gaining share across:
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equities
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options
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fixed income
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margin trading
It has also made a rapid entrance into prediction markets, capturing roughly 30% market share within a year of launch.
Artificial intelligence is becoming central to the platform’s strategy.
Robinhood introduced Cortex, a generative AI assistant that helps users interpret financial markets. Cortex summarizes breaking news, analyst research, and technical data, and connects real-time insights directly to individual portfolios. Access is currently limited to Gold subscribers ($5/month or $50/year).
Strong Earnings and a Clear Signal From Wall Street
Robinhood’s latest quarterly results underscore its momentum.
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Revenue: $1.2 billion (doubled YoY)
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GAAP EPS: $0.61 (more than tripled YoY)
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Funded accounts, assets, and net deposits all reached record highs.
CEO Vladimir Tenev highlighted the rapid growth of prediction markets, noting that trading volume has doubled every quarter since launch.
Robinhood trades at 42× earnings, while analysts expect 22% annual EPS growth over the next three years — a valuation that appears more reasonable relative to its growth outlook.
What Ken Griffin’s Move Signals for Investors
Palantir and Robinhood have already delivered extraordinary gains, yet Citadel’s willingness to buy shares suggests past performance does not automatically eliminate future opportunity. Palantir carries valuation risk. Robinhood faces intense competition. But both companies sit at the intersection of artificial intelligence and long-term market trends.
For investors watching the moves of Wall Street’s most successful hedge fund manager, these purchases highlight where conviction still exists in an AI-driven market.
