The buying frenzy for artificial intelligence (AI) stocks over the past 12 months drove many investors to Microsoft (NASDAQ: MSFT) and Palantir (NYSE: PLTR). Microsoft's stock rallied 65% while Palantir's stock soared more than 150%.

Microsoft gained a lot of attention because it was the biggest backer of OpenAI, the start-up that created ChatGPT. Its integration of OpenAI's generative AI tools into its own ecosystem also accelerated the growth of its cloud-based services. Palantir, which provides data mining tools for government and commercial customers, impressed investors with its expansion into the AI market and its rising profits.

But should investors buy either of these hot stocks after last year's massive gains?

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Source Fool.com