Palantir's AI Ambitions: From Defense Darling to Commercial Powerhouse

Palantir Won Pentagon -- Next Target: Fortune 500 - Palantir Technologies (NASDAQ:PLTR)

Could a company once cloaked in secrecy become the corporate world's AI powerhouse? As Palantir Technologies Inc PLTR sets its sights on the Fortune 500, its transformation from a defense stalwart to a commercial titan might just redefine its future -- and the industry's. PLTR is challenging its highest level of the year. Track live prices here. Palantir's stock has already gained over 100% so far in 2025. Fresh off landing a $480 million AI deal with the U.S. Army and being selected as one of the military's primary artificial intelligence vendors, Palantir has solidified its position as a national security stalwart. But CEO Alex Karp has made it clear: the real growth lies beyond Washington. The company's next mission? Conquering the corporate world. Read Also: Palantir's Shyam Shankar Says AI Won't Kill Jobs -- It'll Give Blue-Collar Workers 'Superpowers' And Make Them 50X More Productive From Battlegrounds To Boardrooms In the first quarter, Palantir's commercial revenue jumped 27% year-over-year, surpassing the growth rate of its government business. U.S. commercial sales alone soared 40%, driven by rising demand for its Artificial Intelligence Platform (AIP), which has been aggressively adopted by clients in healthcare, energy, and manufacturing. The firm says more than 660 companies are now part of its U.S. commercial customer base -- up 69% from a year ago. AIP Boot Camps Are Paying Off Palantir's unorthodox strategy of hosting AIP Boot Camps -- immersive sessions where potential clients experiment with Palantir's AI tools using their own data -- seems to be working. These workshops are converting curiosity into contracts, helping the company break into legacy enterprises that once viewed it as too "spy-tech." With big names like Cleveland Clinic, Jacobs Engineering, and Hertz Global Holdings Inc HTZ on board, Palantir is now eyeing the Fortune 500 as its next battlefield. The Stakes Are High Palantir still leans heavily on government revenue. However, if it can replicate its defense success in the private sector, Wall Street could finally see the scaling it has been waiting for. Karp insists the shift is just beginning -- and if his bet on AIP pays off, Palantir could go from defense darling to AI juggernaut. PLTR Price Action: Palantir Technologies shares were up 0.12% at $154.80 at the time of publication on Thursday, according to Benzinga Pro. Read Next: Sydney Sweeney For Palantir Merch? Exec Says 'Hear Me Out' After American Eagle Stock Soars 22% Photo by Mamun_Sheikh via Shutterstock PLTRPalantir Technologies Inc$154.770.09%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum98.83Growth97.52QualityN/AValue2.50Price TrendShortMediumLongOverviewHTZHertz Global Holdings Inc$7.88-0.32%Market News and Data brought to you by Benzinga APIs

Palantir Technologies Stock Hits A New All-Time High: What's Driving The Action? - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc PLTR shares hit a new all-time high Friday morning, capping another week of gains for the artificial intelligence and data analytics firm. Here's what investors need to know. What To Know: The immediate catalyst Friday was a newly initiated Overweight rating from Piper Sandler analyst Brent Bracelin, who announced a $170 price target, fueling investor optimism in early trading. This milestone follows a rally throughout the week, which saw the stock push past its previous record on Wednesday before climbing higher. The company's year-to-date gains have now eclipsed 112%, with shares up 500% in the last year, reflecting intense market enthusiasm for AI plays. Recent momentum has been driven by a string of high-profile government and enterprise developments. Wedbush analyst Dan Ives highlighted Palantir as a key beneficiary of President Donald Trump's "AI Action Plan," which aims to secure U.S. leadership in the sector. This week, Palantir also launched a strategic alliance with Deloitte to accelerate enterprise AI adoption, combining its Foundry platform with Deloitte's domain expertise. The partnership follows major contracts with organizations like NATO. While bullish analysts like Ives and Bracelin are raising their targets, the broader analyst consensus remains a Sell with an average price target near $81. Despite this, investor sentiment, propelled by key government contracts and strategic enterprise partnerships, continues to drive the stock to new heights. Price Action: According to data from Benzinga Pro, PLTR shares are trading higher by 2.76% to $159.14 Friday morning. The stock has a 52-week high of $160.06 and a 52-week low of $21.23. Read Also: Palantir Veterans Set To Launch Founders Films With Pro-America, AI-Powered Slate -- 9/11 Rescue Story In Pipeline: Report Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedHow To Buy PLTR Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in Palantir Technologies' case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Image: Shutterstock PLTRPalantir Technologies Inc$159.092.73%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum98.88Growth97.53QualityN/AValue2.39Price TrendShortMediumLongOverview This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Palantir Touches New All-Time High Before Fading After Hours: What's Going On? - BigBear.ai Hldgs (NYSE:BBAI), Oracle (NYSE:ORCL)

Shares of Palantir Technologies Inc. PLTR surged to a fresh all-time high, despite there being no company-specific news to lead the session. Check out the current price of PLTR stock here. What Happened: The stock rose 3.72% on Wednesday, closing at $154.62, after reaching an all-time high of $155.68. It has since declined 0.39% after hours at the time of writing this. This brings the company's year-to-date gains to 105.64%, 436% over the past year, and 1,580% over the past five years. While there were no immediate catalysts that sparked the stock's rally this week, the company has had a string of good news over the past month that has helped buoy the stock. See Also: Palantir Veterans Set To Launch Founders Films With Pro-America, AI-Powered Slate -- 9/11 Rescue Story In Pipeline: Report This includes a recent contract with NATO, alongside its growing role in government-backed AI initiatives, such as in President Donald Trump's Project Stargate. Wedbush Securities analyst Dan Ives believes that Palantir is on the trajectory to become a major enterprise software player, comparing its potential to that of Oracle Corp. ORCL. He said this while raising his target for the stock, from $140 to $160, representing an upside of 3.47% from current levels. However, analyst consensus for the stock is currently well below the market price at $76.72 per share, with a broad "Sell" rating based on calls by 23 analysts over the past month. Why It Matters: Investor Martin Shkreli, popularly referred to as "Pharma Bro," says there is no reason Palantir "can't be a $10 trillion company," since its total addressable market spans the inefficiencies of all Fortune 500 companies. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started He does, however, warn about execution risks, saying that one bad quarter can bring the stock down 50%. Shkreli believes the stock requires "execution to perfection" from management Recently, BigBear.ai Holdings Inc. BBAI has been touted as the next Palantir, being an artificial intelligence and analytics play that is focused on defense and government contracts. The stock is up 92.94% year-to-date and 583% from its 52-week low, which is believed to be only the beginning. Analysts from H.C. Wainwright recently raised their target for the stock, from $6 to $9, representing an upside of 13.49% from current levels. Price Action: Palantir shares were up 3.72% on Wednesday, trading at $154.62, and are down 0.39% after hours. According to Benzinga's Edge Stock Rankings, Palantir scores high on Momentum and Growth, while having a favorable price trend in the short, medium and long terms. How does it compare with BigBear.ai? Click here to find, along with more facts and insights. Photo: slyellow / Shutterstock.com Read More: Palantir-Deloitte Alliance Targets Tech Debt With New AI-Powered Operating System To 'Make America Stronger' BBAIBigBear.ai Holdings Inc$7.836.23%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum98.50GrowthN/AQualityN/AValue16.41Price TrendShortMediumLongOverviewORCLOracle Corp$243.282.17%PLTRPalantir Technologies Inc$154.203.44%Market News and Data brought to you by Benzinga APIs

The Secret AI Powerhouse Winning Big In Defense And Beyond - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. PLTR has risen from the ashes of doubt to become one of the most talked-about names in the AI revolution. Piper Sandler analyst Brent A. Bracelin sees this transformation as more than just a rebound, framing Palantir as a long-term winner in the evolving AI landscape. The analyst initiated coverage on the stock with an Overweight rating and a price forecast of $170. Also Read: This Palantir Technologies Analyst Begins Coverage On A Bullish Note; Here Are Top 5 Initiations For Friday Bracelin highlights that Palantir has been closely followed for over five years, evolving from a highly sought-after late-stage private company to one that made its public debut via direct listing in September 2020. The analyst recalls the challenging phase in late 2022, when investor confidence in Palantir's ability to sustain 30%+ multi-year growth waned, pushing the stock to lows of around $6. Since then, however, the company has staged a significant comeback, what Bracelin refers to as a "rise of the phoenix", and is now regarded as a standout player in the AI space due to its accelerating growth momentum. While the analyst acknowledges that Palantir's valuation is steep and the investment carries a high degree of risk, Bracelin points out that its unique combination of strong growth and expanding margins could support a $24 billion annual revenue run rate by calendar year 2032, as the company captures market share across two addressable markets worth over $1 trillion each. In Bracelin's view, Palantir is well-positioned to emerge as a long-term AI winner. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started However, given the stock's history of high volatility, including more than a dozen pullbacks in the 20-29% range, he advises a patient, opportunistic approach by buying on dips to build positions over time. Bracelin points out that recent data on unique visitor traffic across four prominent Defense Tech firms, Palantir, Anduril, Shield AI, and Axon, indicates that Palantir has seen its year-over-year visitor growth surpass triple digits for the first time in two years. While he acknowledges that rising web traffic doesn't necessarily translate directly into higher revenues, it does act as a useful proxy for gauging relative market interest compared to similar companies. Among the four companies reviewed, only Palantir and Anduril are currently exhibiting triple-digit annual growth in unique visitors, underscoring their growing prominence in the Defense Tech landscape. He also reflects on the distinctive and often unconventional trajectory that has defined Palantir's evolution, most notably, its decision to sue (and ultimately win against) the U.S. Army, a rare move for a defense-oriented startup. Bracelin emphasizes that Palantir's journey to achieving a ~$4 billion revenue run-rate, coupled with free cash flow margins exceeding 40%, has spanned over two decades and has been marked by a unique blend of culture, leadership style, and strategic decisions. Price Action: PLTR shares are trading higher by 2.55% to $158.78 at last check Friday. Read Next: Dan Ives Calls Microsoft 'Scottie Scheffler Of Software' Ahead Of Earnings -- Says Satya Nadella-Led Cloud Giant Is Firing On All Cylinders In AI Boom Image via Shutterstock PLTRPalantir Technologies Inc$159.342.89%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum98.88Growth97.53QualityN/AValue2.39Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Should You Buy Palantir Technology Stock Before Aug. 4? | The Motley Fool

The data mining and artificial intelligence (AI) specialist is firing on all cylinders, but the answer is still complicated. The advent of artificial intelligence (AI) several years ago sparked a paradigm shift in technology that will likely continue for the next decade. Generative AI has the potential to streamline processes, increase productivity, and drive more profits to the bottom line. This has large and small businesses alike eager to join the AI revolution, but many simply don't know how to get started. Palantir Technologies (PLTR 2.59%) recognized the need and responded accordingly. The company developed a system designed to provide real-time, data-driven solutions while providing companies with a way to get started, and the results speak for themselves. The stock has gained 421% over the past year (as of this writing) and is up 1,890% since AI went viral in late 2022. The company faces a key test with investors when Palantir reports its second-quarter results after the market close on Aug. 4. Given the stock's blistering returns over the past year, should investors buy Palantir stock ahead of this crucial financial report, or wait until after the results have been made public? Let's see what we can learn from the available evidence. While generative AI has been all the rage over the past couple of years, Palantir has been developing data mining and AI solutions long before it became fashionable. The company worked in relative obscurity for years, designing AI-powered solutions for U.S. intelligence agencies and other federal departments. After establishing itself as the gold standard for government AI solutions, Palantir turned its attention to corporate America and created a platform that could devise elegant solutions to everyday business problems. By connecting siloed business software systems through a central dashboard, Palantir created a system that provides data-driven intelligence and actionable insights. The company's most recent brainchild, its Artificial Intelligence Platform (AIP), leverages company-specific information to craft custom solutions. Many business executives are keen to benefit from the windfall of AI, but have no idea how to implement the appropriate systems. That's where Palantir comes in. Business executives and developers are partnered with Palantir engineers to create solutions for their most pressing issues. "These immersive, hands-on sessions allow new and existing customers to build live alongside Palantir engineers, all working toward the common goal of deploying AI in operations," Palantir said. Its success is irrefutable. In the first quarter, Palantir's revenue grew 39% year over year, while adjusted earnings per share (EPS) jumped 63%. That's only part of the story. Palantir's U.S. commercial revenue -- which includes AIP -- surged 71%, while the segment's customer count climbed 65%. Additionally, the segment's remaining deal value (RDV) -- which provides a glimpse into the company's future growth trajectory -- soared 127%. It's also worth noting that each of these growth rates is accelerating. Furthermore, sales and profits have ratcheted higher for nine consecutive quarters, with no signs of slowing. The stock's parabolic run over the past few years has kicked its valuation into the stratosphere. Palantir is currently selling for 255 times forward earnings and 90 times forward sales, which most investors would concede is a pricey valuation, and Wall Street seems to agree. Of the 25 analysts who offered an opinion on Palantir in July, only four rate the stock a buy or strong buy, while 16 recommend holding, and five rate it underperform or sell. That means 84% of analysts don't believe Palantir is a buy right now. However, it's important to point out that Wall Street analysts tend to focus on the next 12 to 18 months. Given that Palantir's growth story is expected to play out over the next decade or longer, the two views are at odds. Furthermore, those disparate opinions can both be right: In the short run, Palantir stock could fall or enter a period of multiple compression, in which the fundamentals continue to improve while the stock remains range-bound. It could also be a massive winner over the next decade for investors with the intestinal fortitude to hold through the volatility that's sure to come. Given the current environment and the unresolved issues of inflation and tariffs, it's easy to imagine executives delaying unnecessary spending. That said, the economic uncertainty could be a catalyst for Palantir, according to Ark Investment Management CEO Cathie Wood. "When businesses and consumers are scared, they'll change the way they do things, and that's usually good for the companies that are helping others do things better, cheaper, faster, more creatively, and more productively," she said. Wood believes Palantir's proprietary solutions position the company well for the continued adoption of AI. "We think Palantir is going to be one of the biggest beneficiaries as companies try and make themselves more efficient and move into the AI age," she said, "You've got the C-suite really trying to figure this out, understanding strategically that if they don't jump into the AI age, they'll be left behind." There's more. In a post on X (formerly Twitter) on Saturday, Wood said (emphasis mine), "CEO Alex Karp believes that [Palantir] will become the largest pure-play enterprise AI software company in the world. I believe him." As a general rule, I shy away from date-driven stock buying. I tend to be more successful when I take a step back and view the company's execution, competition, and market opportunity holistically. Palantir's execution thus far has been stellar. The company's unique approach will make it hard for would-be competitors to replicate Palantir's results. It's difficult to accurately size the market opportunity for AI, and estimates vary wildly. In Ark Invest's Big Ideas 2025 report, Wood calculates that the AI software opportunity alone could be worth $13 trillion by 2030. There's a lot to like about Palantir, and I have purchased the stock several times in recent years. In most instances, valuation isn't something I consider, but it's hard to ignore in the case of Palantir. That said, I still believe the stock is worth owning -- as long as investors know what they're getting into. Palantir comes with extraordinarily high multiples. That, combined with the company's rapid growth, is the very recipe for extreme volatility. I'd be comfortable predicting that, at some point over the next 18 months, Palantir stock will likely plunge by 50%. Does that mean I plan to sell the stock? Not at all. It simply means I'm prepared for the inevitable ups and downs that are part of the cost of admission for owning a high-growth stock such as this. Those disclaimers aside, investors looking to establish a position in Palantir should consider a small position and add opportunistically on any weakness. Dollar-cost averaging is another potential strategy, as it allows investors to build a position over time, adding more shares when the price is lower and fewer when the valuation is higher. I stand by the assertion that being a Palantir shareholder isn't for the faint of heart. That said, for those who adopt a long-term outlook and can withstand the inevitable volatility, I expect it to be a profitable investment 10 years from now.

Is It Too Late to Buy Palantir Stock? | The Motley Fool

The stock of Palantir Technologies (PLTR 2.59%) has been on an incredible run over the past few years. It has basically doubled so far in 2025 and is up more than 750% since 2024. This could lead some investors to believe they've missed the Palantir train. Still, many stocks have experienced significant growth in a short time, only to continue rising in subsequent years. Is Palantir one of those businesses that can maintain its incredible performance for years to come? Or has the stock reached a top? Let's see if investors are too late to the party or right on time. Palantir's AI-powered data analytics software platform has been in use for a considerable time. It began in the early 2000s as a government-focused software company and quickly expanded to work with both the U.S. government and various international governments. In the late 2010s, it expanded outside its government footprint and started offering its platform to commercial clients. This expansion has largely been successful, but government revenue still makes up the majority of Palantir's total. With the generative AI boom, the stock has received a huge boost as investors have piled into it. Management has also leaned into this revolution with the launch of its Artificial Intelligence Platform (AIP), which enables the integration of large language models (LLMs) and AI agents. AIP can significantly enhance worker productivity and expand the capabilities of Palantir, making it an increasingly popular platform that continues to grow rapidly. These catalysts add up to a company that's growing at a fairly rapid pace. In the first quarter, total revenue increased 39% year over year, and it provided guidance for 38% growth in the second quarter. Management has a history of setting low expectations for itself, allowing it to beat guidance every quarter, and the actual second-quarter growth rate is likely a few percentage points higher. Some bright spots in the business include the U.S. commercial division, which saw revenue rise an outstanding 71% in the first quarter. The weak spot in results was its international commercial business, but this could easily see a boost as AI adoption becomes more widespread in Europe. However, there is one red flag to be aware of, and it could signal that new investors may indeed be late to the party. As mentioned above, Palantir's revenue grew 39% year over year in the first quarter, while its stock has increased by over 750% since the start of 2024. Those two numbers are incredibly far apart, indicating that the valuation of the stock has risen dramatically compared to what its business is achieving. At nearly 120 times sales, the stock is almost unimaginably expensive. Most software stocks trade for 10 to 20 times sales, with the most expensive reaching 30 times sales. Palantir's stock is at least four times as expensive, yet the company isn't producing growth numbers that are that impressive considering the price tag. For the stock to return to a price tag of 30 times sales -- very expensive but still far more reasonable -- its trailing-12-month revenue would need to be $11.7 billion. For Palantir to reach that revenue in three years, it would need to deliver a 56% compound annual growth rate (CAGR), far higher than its current pace. So, there is at least three to four years of growth already baked into the stock price, which doesn't bode well for new investors. As a result, I think they should consider finding another AI stock to invest in, as Palantir's price has risen too far, too fast.

Palantir Is Crushing the S&P This Year. Here's Why.

Once again, Palantir Technologies (PLTR -1.14%) is easily outpacing the S&P 500 this year. As of mid-2025, the stock has more than doubled, making it the best-performing stock in the index. Even more impressive is that it was also the best-performing stock in the S&P 500 last year, when it was up a whopping 340%. So, what's driving Palantir's remarkable performance? Simply put, the company is firing on all cylinders. It's seeing accelerating revenue growth, strong momentum in both the U.S. commercial and government sectors, and the opportunity still in front of it is just massive. What makes Palantir special? Palantir isn't just another artificial intelligence (AI) company. While many tech companies are busy developing AI models, Palantir is focused on helping organizations use AI to make actionable decisions. Palantir's platform doesn't just gather data and analyze it -- it's able to capture data from a wide array of sources and then organize it into an ontology that it then links to real-world assets and processes. This essentially turns its Artificial Intelligence Platform (AIP) into an AI operating system that allows its customers to apply AI to solve real-world problems. Accelerating revenue growth One of the biggest reasons behind the stock's massive gains, both this year and last, is that Palantir's accelerating revenue. In Q1, the company's revenue jumped 39% year over year to $884 million. It was the seventh consecutive quarter that the company's revenue growth increased. Data source: Palantir quarterly reports. Palantir's strong revenue growth is driven by the U.S. commercial sector. For years, the company's main source of revenue has been from government contracts, and the U.S. government is still its largest customer by far. However, what's really caught investors' attention is the company's massive growth in commercial clients. U.S. commercial customers are embracing Palantir's AIP, and demand is only picking up. In Q1, its U.S. commercial revenue soared by 71%, but even more important was that its commercial remaining deal value -- which refers to revenue it will recognize in the future from contracts already signed -- surged by 127%. Palantir's government business also isn't slowing down. Its U.S. government revenue rose 45% last quarter as the federal government begins to embrace AI. The company continues to have a strong relationship with the U.S. Department of Defense (DoD) and is constantly signing large multiyear contracts. Separately, it also recently signed a large deal with NATO for its Maven Smart System. International defense could be yet another area of growth for the company in the coming years. Massive potential of Palantir's AI platform What really gets investors excited, though, is Palantir's potential. Its platform is already used across a wide range of sectors, including defense, healthcare, finance, telecom, and energy. Just the breadth of use cases its platform is being used for is remarkable. It's being used for everything from helping monitor sepsis at hospitals to managing energy infrastructure to optimizing supply chains for food companies. If Palantir can continue expanding its footprint into more industries and countries, its growth potential is limitless. Notably, the company's platform hasn't really even been embraced by European companies, which opens another big area of growth down the line. It also recently introduced AI agents to its platform. This could be another big step forward, making its platform even more action-driven. Is Palantir's stock still a buy? Not surprisingly, being the top performer in the S&P in both 2024 and so far in 2025 led the stock to carry a pretty hefty valuation. Its price-to-earnings ratio is now 665, with its forward P/E at 270 and its price-to-sales ratio at 122. While Palantir's stock isn't cheap, its growth story is compelling. The opportunity in front of it is just massive, given the breadth of industries and use cases its AI platform can be used for. Great companies are rarely cheap, and if Palantir can become the operating system of AI, the stock is still going to have plenty of upside from here over the long term.

Palantir Stock Just Zoomed Past $150. My Prediction for What Comes Next | The Motley Fool

One of the best-performing stocks of the last 12 months is Palantir Technologies (PLTR -1.96%). It has gone on an incredible run for shareholders in that period with a 436% gain, adding to its whopping 2,300% return since the beginning of 2023. That is a more than 20x return in just two and a half years, making many shareholders rich in the process. The artificial intelligence (AI) company serves many large organizations like the Department of Defense, and it's seeing accelerating revenue growth and huge customer wins. Investors are so bullish that Palantir stock recently zoomed past $150 per share, giving it a market cap of nearly $350 billion. Here's my prediction for what comes next for Palantir Technologies. The first thing that jumps out about Palantir is the company's accelerating momentum at scale. Last quarter, its revenue grew 39% year over year to $884 million, driven by strong domestic sales. U.S. revenue was up 55%, while U.S. commercial revenue (coming from the private sector) growth accelerated to 71% year over year. At the same time, Palantir is expanding its profitability. Operating margin was 20% last quarter and 13% over the last 12 months. With strong gross margins, Palantir has a clear path to keep expanding its profit margins as the business scales. Forward indicators look bright for Palantir as well. Just in the first quarter, it closed 139 deals with customers worth over $1 million, plus an additional 31 deals worth at least $10 million. As the AI operating system for large enterprises, Palantir is proving its worth and seeing huge spending from these customers. The U.S. Department of Defense alone has contracts worth over $1 billion with Palantir, with room to expand over time. Revenue and earnings should keep growing for Palantir as it shapes up to be one of the biggest software winners of the decade. Using its AI and software analytics, Palantir is aiming to move into more and more industries to help spur innovation. For example, it's working with a start-up called The Nuclear Company to install Palantir software as the operating system for its entire nuclear energy supply chain. The company is aiming to build gigawatt-scale nuclear energy plants in the U.S. to help with rising electricity demands. Industries like this could end up being large growth drivers for Palantir in the long term. The U.S. government wants the industry to spend hundreds of billions of dollars, if not trillions of dollars, building new nuclear energy facilities. If they are powered by Palantir's AI software -- which could speed up regulatory approvals and save on major cost overruns -- then it could be a huge opportunity for the company. Overall, Palantir has its hands in a lot of pies, both in the public and private sectors. Organizations are seeing the value of its AI tools, which is why revenue has reached a $3.5 billion annual run rate. Spending on AI software is set to grow for the rest of the decade, meaning that Palantir's market opportunity is expanding. It's not unreasonable to believe the company can reach $10 billion or $20 billion of annual revenue in the future. There is a lot to like about Palantir's business. But when it comes to the stock, it may be the most overvalued company in history. With a market cap of more than $350 billion, its price-to-sales (P/S) ratio is 122.7. To be clear, that is its price-to-sales ratio, not its price-to-earnings (P/E) ratio. Meanwhile, the S&P 500, which many investors are warning is already overvalued, sports a P/S ratio of 3.2. That incredible premium means investors are pricing in huge expectations for growth that will be difficult for even a company like Palantir to deliver. Even if Palantir grows its revenue to $20 billion over the next decade and achieves a 30% profit margin, that is $6 billion in annual earnings. Its P/E ratio would be nearly 60 based on its current market cap. That 10-year forward P/E ratio of 60 is still well over twice the long-term average of the S&P 500. These are not the conditions for strong long-term returns. I predict Palantir stock's future does not look like the recent past as the share price butts up against reality over the next decade. It is a great business but one that is extremely overvalued. I would avoid buying Palantir stock at these levels.

Palantir Stock Soared 100% in 2025 to Hit a Record High in July. History Says This Will Happen Next. | The Motley Fool

Palantir Technologies (PLTR -1.73%) stock had rocketed more than 100% year to date, as of July 17, reaching a new record high of $154 per share. That brought its total return to 1,680% since the November 2022 launch of ChatGPT, the application widely credited with popularizing generative artificial intelligence (AI). Here's what investors should know about Palantir and what history says the stock will do next. Palantir develops analytics platforms that help businesses make sense of complex data. The company says its key differentiator is an ontology-based software architecture. An ontology is a framework that links digital information to real-world assets to uncover cause-and-effect relationships that improve decision-making. Palantir's artificial intelligence platform (AIP) enhances its core data operations platforms with support for large language models and natural language processing. In other words, AIP lets users apply generative AI to their operations. Management says the product is uniquely positioned to help customers operationalize AI, meaning the software can move prototypes to production more effectively than other solutions. Several Wall Street analysts have echoed that opinion. Forrester Research recently ranked Palantir as a leader in artificial intelligence and machine learning platforms, awarding AIP higher scores than products from Alphabet's Google and Microsoft. "Palantir is quietly becoming one of the largest players in this market," wrote analyst Mike Gualtieri. Palantir reported strong first-quarter financial results. Revenue rose 39% to $884 million, the seventh straight acceleration, due to particularly strong sales growth in the government segment. Non-GAAP earnings rose 62% to $0.13 per diluted share. Management cited demand for its artificial intelligence platform as a key driver of its strong performance. Looking ahead, Wall Street estimates revenue will increase 38% to $939 million and non-GAAP earnings will increase 33% to $0.12 per diluted share when the company announces second-quarter financial results after market close on Aug. 4. But Mizuho analysts, led by Gregg Moskowitz, think Palantir has a good shot at accelerating revenue growth once again. Palantir recently traded at 123 times sales, making it the most expensive stock in the S&P 500 by a wide margin. The next closest company is Texas Pacific Land at 31 times sales. That means Palantir shares could fall 74% and still be the most expensive stock in the S&P 500. Moreover, very few companies have achieved a similar valuation at any point in the last two decades. I reviewed more than 50 software stocks and found only six others that hit multiples above 100 times sales during that period. All of them eventually fell sharply, as detailed below: To summarize, only six software companies (excluding Palantir) achieved valuations above 100 times sales in the last two decades, and their stocks eventually declined by an average of 81%. Moreover, none of those six stocks have yet reached a new record high, and they're still down by an average of 58% today. Here's what that implies about Palantir. The stock traded at $154 per share when it reached its peak valuation of 123 times sales on July 17, 2025. Its price will eventually drop 81% to approximately $30 per share if its performance matches the historical average. As a caveat, past performance doesn't guarantee future results, so Palantir's share price isn't obligated to decline. But there's no denying the stock is very expensive, meaning the risk-reward ratio is skewed to the downside. Investors should think carefully before buying Palantir at current prices. I think it would be prudent to wait for a better entry point.

Will Palantir Surge After Aug. 4? History's Answer Is Strikingly Clear. | The Motley Fool

Palantir Technologies (PLTR -1.73%) has been one of the early winners of the artificial intelligence (AI) revolution, and this streak could keep going. Demand has skyrocketed for its AI-powered software platform -- one that's helping governments and commercial customers make game-changing moves. As a result, government and commercial revenue each have been climbing in the double digits quarter after quarter. Since these customers are in the early days of AI adoption, investors can expect more growth for Palantir. Analyst forecasts for AI expansion support this, too, with the overall AI market expected to increase from the billions of dollars today to beyond $2 trillion in just a few years. Investors clearly are excited about all of this as they've piled into Palantir's stock, helping it to soar 1,300% over the past three years. Now, with a catalyst just ahead, you might be wondering if additional gains lie right around the corner -- and whether you should buy the stock. I'll turn to history for some answers. First, though, it's worth taking a look at how this 20-year-old company soared into the spotlight in recent times. Years ago, Palantir generated most of its growth through government contracts. Today, that remains a key part of the company's business, but the AI boom has helped this tech player reach a broader range of customers. Now, as companies and organizations aim to apply AI to their businesses, they're seeking out Palantir. This software company is in the business of helping customers aggregate and make better use of their data -- even data that's otherwise been inaccessible. Just two years ago, Palantir launched its Artificial Intelligence Platform, or AIP, leveraging the power of AI. Here are a couple of examples of how this works. United Airlines used AIP to gather maintenance write-ups over the past decade and develop a predictive maintenance system for its fleet, and the Cleveland Clinic is relying on AIP to optimize patient placement and general efficiency. AIP can be a strong ally for governments, too, with its ability to highlight potential decisions and outcomes on the battlefield, for instance. All of this has helped power Palantir's earnings higher in recent quarters. In the latest period, the company reported a 71% gain in U.S. commercial revenue, a 45% increase in U.S. government revenue, and raised forecasts for full-year revenue, adjusted income from operations, and adjusted free cash flow. Chief executive officer Alex Karp said there has been a "stampede" toward AI that's been driving demand for Palantir's offerings, and I think it could continue to do so. That brings me to what's happening on Aug. 4. On that day, Palantir will announce second-quarter earnings. Considering the company's strength so far when it comes to earnings and stock performance, you may be wondering whether the stock will roar higher after the report. History shows us that Palantir stock has performed as follows in the two-month period after the past six reports: History's answer is strikingly clear: If Palantir follows the historical trend, it may soar in the weeks following its upcoming earnings report. That's fantastic news for Palantir's current shareholders or anyone who buys the stock in the days to come -- but it's important to remember a couple of things. First, though history may offer us clues about what might happen next, stocks don't always follow their historical trends -- they can surprise us. This means it's not a good idea to rush into Palantir today with the hope of scoring a quick gain. Second, whether Palantir bursts higher or not over the coming months won't impact overall performance by much if you hold onto the stock for a number of years. This means you don't have to rush into the stock at one particular moment to get in before a catalyst arrives. Considering all of this, is Palantir a buy? That depends on your investment style. Palantir's gains have resulted in a sky-high valuation, so it's not the best fit for value investors. As a growth stock, it's vulnerable to swings in sentiment and economic data, so very cautious investors might also remain on the sidelines or limit their purchase to a small number of shares. However, for investors focused on growth, Palantir makes a fantastic buy today -- whether it soars after Aug. 4 or not -- as it still may be in its early days of development in the explosive AI market.

In 27 Years of Investing, I've Never Witnessed a More Overvalued Megacap Stock

Palantir Technologies is, arguably, the priciest megacap stock of the century. For more than three decades, investors have been privy to no shortage of next-big-thing trends and game-changing innovations. Pie-in-the-sky addressable markets assigned to new innovations often lead to premium valuations for the companies leading the charge. While the development and eventual bursting of bubbles is something of a common theme on Wall Street, when examined over the long run, some bubbles have proved easier to spot than others. As someone who's been putting their money to work in the stock market for 27 years, I've seen my fair share of expensive companies on the leading edge of next-big-thing trends. While some of these powerhouses have proved me wrong and sustained some of their premium, most eventually succumb to historical headwinds. At the moment, artificial intelligence (AI) is the hottest thing since sliced bread on Wall Street -- and AI-data-mining specialist Palantir Technologies (PLTR 3.58%) is, without a shadow of a doubt, the most overvalued megacap stock (i.e., companies with market caps north of $200 billion) I've ever witnessed. Palantir's sustainable moat has made it one of the tech sector's most important companies Let me be clear that my issues with Palantir (which I'll discuss in detail in a moment) are prominently valuation-based. Palantir's ascent from a $15 billion market cap at the end of 2022 to a $352 billion market cap, as of this writing on July 22, wasn't an accident. It's a reflection of investors being excited about the company's sustainable moat, growth rate, and ideal positioning under the Donald Trump administration. There are few things investors value more on Wall Street than irreplaceability. If your business offers something that no other businesses can deliver at scale, it often results in investors bestowing a premium valuation on your stock. Palantir's two operating segments -- Gotham and Foundry -- certainly fit this mold. Gotham is an AI- and machine learning-fueled software-as-a-service platform that collects and analyzes data, as well as assists with military mission planning and execution. There's nothing comparable to Gotham, which ensures the multiyear contracts this segment lands generate highly predictable annual sales and operating cash flow. Meanwhile, Foundry assists businesses by helping them make sense of their big data, which can entail optimizing supply chains and automating certain aspects of the decision-making process. Foundry is a relatively newer subscription-based segment that's growing like a weed. Speaking of growth, Palantir has pretty consistently maintained an annual sales growth rate in the 25% to 35% range. A number of sizable government contracts, many of which stretch over four or five years, have helped it sustain this robust top-line growth rate. Furthermore, Palantir made the shift to recurring profitability well ahead of Wall Street's consensus expectation. Generating a recurring profit validates Palantir's dual-platform operating model and affords the faster-growing Foundry a lengthy runway to get up to speed. Lastly, investors appreciate Palantir's positioning as a key defense stock under a unified Republican government. President Trump has made national security a key focus of his second term, which ties in perfectly to Palantir's Gotham platform. Palantir is the priciest megacap stock of the century Among the stock market's thousands of publicly traded companies, I can pinpoint quite a few whose valuations make no sense whatsoever. But among the very select class of industry leaders and Wall Street's most-influential businesses, there hasn't been a megacap stock this century that's rivaled Palantir from a valuation standpoint. When looking back three decades, there have been quite a few instances where cutting-edge businesses topped out at price-to-sales (P/S) ratios in the neighborhood of 30 to 40. Prior to the bursting of the dot-com bubble, networking solutions provider Cisco Systems, e-commerce giant Amazon, and software legend Microsoft all topped out at trailing-12-month (TTM) P/S ratios ranging from 31 to 43. More recently, AI graphics processing unit goliath Nvidia peaked at a P/S ratio of more than 42 last summer. Although its current TTM P/S ratio of 28 is still inordinately high, it's nowhere close to Palantir Technologies. As you'll note, Palantir's TTM P/S ratio of 119 makes the prior P/S peaks from the likes of Cisco, Amazon, Microsoft, and Nvidia look more like blips. PLTR PS Ratio data by YCharts. Regardless of addressable market size or investor hype, no megacap stock has ever been able to maintain a TTM P/S ratio of 30-plus over an extended period. What's wild is that Palantir's stock is valued at four times this line-in-the-sand level, which demonstrates just how far outside of historic norms its valuation has ascended. There are other concerns with Palantir that should be taken into consideration -- especially with its stock trading at 119 times TTM sales. For instance, there's not much clarity on defense spending beyond early 2027. Although President Trump is in office through January 2029, midterm elections have the potential to shake-up Congress in 18 months. It's not clear if defense spending will remain a top priority beyond the next six quarters. Investors should also be aware that while Gotham has been nothing short of a superstar for Palantir, its addressable market is quite limited. Its platform is only available to the U.S. and its immediate allies, which takes quite a bit of potential revenue opportunity off the table. Another worry is that next-big-thing innovations have always endured early stage bubble-bursting events. Though Palantir's multiyear government contracts and subscription revenue would help it avoid an immediate fall-off in sales, poor investor sentiment during a bubble-bursting event would almost certainly make Palantir stock a target. The final puzzle piece, which makes Palantir's overvaluation even more egregious, is the quality of the company's profits. Ideally, Gotham and Foundry should be driving close to 100% of Palantir's income. However, 40% of its pre-tax income in 2024 came from interest earned on its cash, which isn't innovative or sustainable. Let me be clear: I'm not trying to precisely call a top in Palantir stock. But I have little doubt in my mind that a substantial pullback is coming at some point in the not-too-distant future.

Should You Forget Palantir and Buy These 3 Tech Stocks Instead? | The Motley Fool

Palantir has been executing incredibly well, but it's overvalued and could be vulnerable to a correction. Palantir Technologies (PLTR 0.26%) is a great company. It's become a key player in the artificial intelligence (AI) world by making AI more actionable. Its Artificial Intelligence Platform (AIP) gathers data from many sources and then links it to real-world assets and processes. This allows organizations to use AI to help solve problems in a more intelligent, efficient way. The company's technology is being used for everything from helping the U.S. military on the battlefield to identifying sepsis in hospitals and helping companies streamline logistics. The breadth of applications for AIP is just massive massive. So why not go out and buy the stock hand over fist? The problem is valuation. Palantir trades at a forward price-to-sales (P/S) multiple of over 91 times 2025 analyst revenue estimates. That's not earnings -- that's sales. That's high by any standard. Yes, Palantir has been executing incredibly well, but at its current valuation, any hiccup could hit the stock hard. As such, investors may want to consider some less pricey potential AI winners. While Alphabet (GOOGL 1.09%) (GOOG 0.95%) shares have started to rebound recently, the stock is still trailing the greater market so far this year. Investors keep fixating on AI as a threat to its core Google search business, but that misses the point entirely. Google isn't just a search engine -- it's a massive content discovery platform with unmatched reach, data, and one of the world's best ad networks behind it. Billions of users access the internet thought its Chrome browser and Android operating system. Most people are used to waking up and using Google, so Alphabet doesn't need to change user behavior when it comes to AI. It just needs to enhance what it's doing with AI, and that is exactly what it's done with its new AI-powered Search Mode. According to Oppenheimer, 82% of users found Google AI mode more useful than traditional search, and most preferred it to ChatGPT. The company also has a major leg up in monetizing AI. While others are charging high subscription fees, Google can keep many of its tools free and monetize them through its ad network. It's already doing this with features like "Shop with AI," which improves e-commerce search and user engagement. Add in its fast-growing cloud business, YouTube, its leading custom AI Tensor Processing Unit chips, Waymo, and its Willow quantum computing chip, and you have one of the most innovative and undervalued platforms in the AI race. While Amazon (AMZN 1.80%) is known for e-commerce and cloud computing, what it's doing behind the scenes with AI is just as important. The company has been integrating AI across its logistics, warehouse automation, and delivery operations to improve efficiency and save costs. Amazon already built a regionalized fulfillment network to cut shipping times and costs, but now it's using AI to predict the best warehouses to store items and to optimize delivery routes. It's even using AI to help drivers find tricky drop-off locations in places like large apartment complexes. It's also deploying increasingly sophisticated robots that can detect damaged goods, handle odd-shaped packages, and even repair themselves. On the cloud side, Amazon continues to be the market-share leader with Amazon Web Services (AWS). Its Bedrock and SageMaker platforms make it easier for developers to build and run AI models, and its custom-built AI chips help keep costs down. That gives AWS a real cost advantage as AI workloads ramp up and it invests in data center infrastructure. All of this is laying the foundation for stronger profitability going forward. Amazon is known to invest big to win big, and while much of its investments are behind the scenes, this is an AI and robotics leader. Meta Platforms (META 0.28%) is another company that is investing heavily in AI. CEO Mark Zuckerberg is betting big on both AI infrastructure and talent, with the goal of building what he calls "personal superintelligence." The company plans to spend "hundreds of billions of dollars" building out next-generation AI infrastructure. This includes multiple AI superclusters that will be able to train enormous AI models. But Meta isn't stopping there. The company has been aggressively poaching top AI talent from other companies with lucrative pay packages to join its new Meta Superintelligence Labs. Currently, Meta has been using AI to great success to increase user engagement and make its ads more successful. This has been leading to more ad inventory and higher ad prices. Meanwhile, it's just begun to serve ads on its popular messaging app, WhatsApp, and new social media platform, Threads. However, Zuckerberg's ultimate vision is a lot bigger. He's not finished with augmented or virtual reality, and he wants Llama to become a universal AI assistant that everyone in the world will access. The strength of Meta's core business is a good reason to own the stock, as the company will have a lot of growth from beginning to serve ads on WhatsApp and Threads. Meanwhile, Meta's big bets on AI and other technology give investors a lot of future optionality that isn't priced into the stock.

Where Will Palantir Stock Be in 5 Years? | The Motley Fool

Even though its stock price has more than doubled so far in 2025, Palantir Technologies' (PLTR 2.59%) bull run shows no signs of stopping. The controversial big data analytics company is benefiting from a surge in public- and private-sector clients adopting its artificial intelligence (AI)-enabled software. But is the market getting ahead of itself? Below, I'll dig deeper into Palantir's fundamentals to see what's really behind this rally and decide if shares can continue beating the market over the next five years and beyond. Palantir's meteoric rise seems to be related to two different hype cycles -- the rise of generative AI and the election of President Donald Trump. The first one is the most clear-cut. Since the launch of OpenAI's ChatGPT in late 2022, investors have been desperate to find software companies that can pioneer real-world use cases for the technology. Palantir is a natural fit. Its core data analytics business was already designed to help clients uncover trends and actionable insights in vast volumes of data, and the incorporation of its Artificial Intelligence Platform (AIP) can make this process easier. For example, instead of using complex commands to sort through data, an analyst can simply enter a text prompt and let the large language model (LLM) do the heavy lifting. It also allows the user to create AI agents (trained on the enterprise's data) that can work semi-autonomously. The speed and flexibility of LLMs make them ideal for fast-paced field work, like law enforcement and military operations. Palantir already boasts high-profile clients, like the U.S. Army, the North Atlantic Treaty Organization (NATO), and the armed forces of Ukraine and Israel. Recent legislation also promises to boost defense spending by $156.2 billion for fiscal 2026, with much of that extra money going to next-generation war-fighting capabilities. Palantir's co-founder Peter Thiel is also a close ally of the Trump administration (Vice President JD Vance worked with him at Mithril Capital). This relationship may add to the hype surrounding Palantir, even though the fundamental benefits are unclear. Palantir's first-quarter revenue increased by 39% year over year to $883.9 billion, while net income rose 24% to $214 million. Although this is a decent rate of expansion, it's far from earth-shattering. Other AI-related companies, like the semiconductor giant Nvidia, have frequently posted significantly higher top-line growth rates. Nvidia's revenue growth is absolutely trouncing Palantir's -- it isn't even close. What's worse, however, is that Palantir's stock price has dramatically outperformed its relatively modest fundamentals. When a company's stock price grows significantly faster than its actual business prospects, it becomes overvalued. With a price-to-sales ratio (P/S) of 122, Palantir's stock is considerably more expensive than alternatives like Nvidia, which has a P/S of 29, and the S&P 500, which trades for an average of approximately 3.2. Furthermore, analysts currently don't expect significant acceleration in Palantir's top-line growth rate, with the consensus estimate of just 26% year over year for 2026. A good company doesn't always make a good investment. Challenges like overvaluation can make the risks of holding a stock outweigh any potential upside. With a P/S ratio of 122, calling Palantir priced for perfection seems an understatement. It's really priced to disappoint because it doesn't seem capable of justifying its price tag. Over the next five years, expect shares to underperform the market.

Where Will Palantir Technologies Be in 3 Years? | The Motley Fool

Has there been as exciting a stock over these past three years as artificial intelligence (AI) software standout Palantir Technologies (PLTR 2.59%)? Probably not. The company's growth has continued to accelerate since launching its Artificial Intelligence Platform (AIP) for AI applications in mid-2023. The stock id up a whopping 1,300% over the past three years. It's healthy to be a bit skeptical when stocks generate such massive returns in such a short time. AI continues to prove its staying power, with companies everywhere investing significant resources in data centers and AI development. It's time to look to the future. So, where will Palantir Technologies be in three years? Here is what investors might expect. Over time, AI is likely to become a game-changer for nearly every organization. That goes for government organizations and corporations alike. What makes Palantir Technologies special is its strong ties to both groups. Its growth momentum is strongest in the United States, where sales from government customers increased by 45% year over year in the first quarter of 2025, and revenue from commercial customers grew even faster, up 71% year over year. Palantir has generated $3.1 billion in revenue over the past 12 months and still has just 769 customers. Palantir develops custom software for a seemingly endless range of use cases. The military uses it to support missions, and hospitals use it to coordinate staff and patient care. Those are two examples of many. Essentially, any organization that generates data and can benefit from using that data to do things more efficiently or make better decisions is a potential Palantir customer. Such flexibility in its technology opens up a vast potential customer base. There are roughly 20,000 large companies in the United States, and the government has other departments and organizations. Investors are excited for good reason; Palantir has a high ceiling if things continue to go well. The chart below is not of Palantir's share price but rather its price-to-sales (P/S) ratio. That's the relationship between the stock's market value and Palantir's revenue. If the stock's value and Palantir's revenue rose proportionately, the line would be flat. Instead, it reflects how the stock price has consistently risen faster, pushing that ratio ever higher. Excessive valuations can be hazardous to your portfolio. At some point, valuations can get so high that they create impossible expectations. When the stock inevitably fails to meet those expectations, the share price can unwind violently. The bubble bursts. At this point, it's fair to argue that Palantir's valuation is irrationally high. There may not be a higher valuation on Wall Street today, and the only similar example I can think of is Snowflake, just after it went public amid a stock market bubble in 2020-2021. Investors who bought Snowflake stock the day it began trading are still waiting for it to show a gain years later. Nobody can predict where a stock may trade in the future, but the odds are rising that Palantir will serve up disappointing returns for a while from these high prices. I'll assume that Palantir sustains 40% annualized revenue growth over the next three years. That would mean that its trailing-12-month revenue of $3.1 billion would grow to $4.3 billion, then $6 billion, and finally, $8.5 billion three years from now. Today, Palantir trades at a market cap of $358 billion. Here are some projections for what the stock could do, depending on various valuations. Data source: The author's own calculations. Palantir's growth could slow down or accelerate, but assuming 40% annualized revenue growth is probably generous. Analysts currently estimate that Palantir's full-year 2025 revenue will be 35% higher than last year, so this exercise assumes growth will accelerate further and then maintain that pace for over two years. And yet, investors still must hope that the stock can maintain a breathtakingly high valuation. Otherwise, the upside dries up quickly. A P/S ratio of 40 is still very steep. Even Nvidia, perhaps the top AI stock today, trades at 27 times its revenue. The bottom line? Palantir probably has more room to fall than to continue rising at this point. Therefore, the odds favor Palantir disappointing investors after an epic past three years.

Should You Buy Palantir Technologies Stock Before Aug. 4? | The Motley Fool

The data mining and artificial intelligence (AI) specialist is firing on all cylinders, but the answer is still complicated. The advent of artificial intelligence (AI) several years ago sparked a paradigm shift in technology that will likely continue for the next decade. Generative AI has the potential to streamline processes, increase productivity, and drive more profits to the bottom line. This has large and small businesses alike eager to join the AI revolution, but many simply don't know how to get started. Palantir Technologies (PLTR 2.59%) recognized the need and responded accordingly. The company developed a system designed to provide real-time, data-driven solutions while providing companies with a way to get started, and the results speak for themselves. The stock has gained 421% over the past year (as of this writing) and is up 1,890% since AI went viral in late 2022. The company faces a key test with investors when Palantir reports its second-quarter results after the market close on Aug. 4. Given the stock's blistering returns over the past year, should investors buy Palantir stock ahead of this crucial financial report, or wait until after the results have been made public? Let's see what we can learn from the available evidence. While generative AI has been all the rage over the past couple of years, Palantir has been developing data mining and AI solutions long before it became fashionable. The company worked in relative obscurity for years, designing AI-powered solutions for U.S. intelligence agencies and other federal departments. After establishing itself as the gold standard for government AI solutions, Palantir turned its attention to corporate America and created a platform that could devise elegant solutions to everyday business problems. By connecting siloed business software systems through a central dashboard, Palantir created a system that provides data-driven intelligence and actionable insights. The company's most recent brainchild, its Artificial Intelligence Platform (AIP), leverages company-specific information to craft custom solutions. Many business executives are keen to benefit from the windfall of AI, but have no idea how to implement the appropriate systems. That's where Palantir comes in. Business executives and developers are partnered with Palantir engineers to create solutions for their most pressing issues. "These immersive, hands-on sessions allow new and existing customers to build live alongside Palantir engineers, all working toward the common goal of deploying AI in operations," Palantir said. Its success is irrefutable. In the first quarter, Palantir's revenue grew 39% year over year, while adjusted earnings per share (EPS) jumped 63%. That's only part of the story. Palantir's U.S. commercial revenue -- which includes AIP -- surged 71%, while the segment's customer count climbed 65%. Additionally, the segment's remaining deal value (RDV) -- which provides a glimpse into the company's future growth trajectory -- soared 127%. It's also worth noting that each of these growth rates is accelerating. Furthermore, sales and profits have ratcheted higher for nine consecutive quarters, with no signs of slowing. The stock's parabolic run over the past few years has kicked its valuation into the stratosphere. Palantir is currently selling for 255 times forward earnings and 90 times forward sales, which most investors would concede is a pricey valuation, and Wall Street seems to agree. Of the 25 analysts who offered an opinion on Palantir in July, only four rate the stock a buy or strong buy, while 16 recommend holding, and five rate it underperform or sell. That means 84% of analysts don't believe Palantir is a buy right now. However, it's important to point out that Wall Street analysts tend to focus on the next 12 to 18 months. Given that Palantir's growth story is expected to play out over the next decade or longer, the two views are at odds. Furthermore, those disparate opinions can both be right: In the short run, Palantir stock could fall or enter a period of multiple compression, in which the fundamentals continue to improve while the stock remains range-bound. It could also be a massive winner over the next decade for investors with the intestinal fortitude to hold through the volatility that's sure to come. Given the current environment and the unresolved issues of inflation and tariffs, it's easy to imagine executives delaying unnecessary spending. That said, the economic uncertainty could be a catalyst for Palantir, according to Ark Investment Management CEO Cathie Wood. "When businesses and consumers are scared, they'll change the way they do things, and that's usually good for the companies that are helping others do things better, cheaper, faster, more creatively, and more productively," she said. Wood believes Palantir's proprietary solutions position the company well for the continued adoption of AI. "We think Palantir is going to be one of the biggest beneficiaries as companies try and make themselves more efficient and move into the AI age," she said, "You've got the C-suite really trying to figure this out, understanding strategically that if they don't jump into the AI age, they'll be left behind." There's more. In a post on X (formerly Twitter) on Saturday, Wood said (emphasis mine), "CEO Alex Karp believes that [Palantir] will become the largest pure-play enterprise AI software company in the world. I believe him." As a general rule, I shy away from date-driven stock buying. I tend to be more successful when I take a step back and view the company's execution, competition, and market opportunity holistically. Palantir's execution thus far has been stellar. The company's unique approach will make it hard for would-be competitors to replicate Palantir's results. It's difficult to accurately size the market opportunity for AI, and estimates vary wildly. In Ark Invest's Big Ideas 2025 report, Wood calculates that the AI software opportunity alone could be worth $13 trillion by 2030. There's a lot to like about Palantir, and I have purchased the stock several times in recent years. In most instances, valuation isn't something I consider, but it's hard to ignore in the case of Palantir. That said, I still believe the stock is worth owning -- as long as investors know what they're getting into. Palantir comes with extraordinarily high multiples. That, combined with the company's rapid growth, is the very recipe for extreme volatility. I'd be comfortable predicting that, at some point over the next 18 months, Palantir stock will likely plunge by 50%. Does that mean I plan to sell the stock? Not at all. It simply means I'm prepared for the inevitable ups and downs that are part of the cost of admission for owning a high-growth stock such as this. Those disclaimers aside, investors looking to establish a position in Palantir should consider a small position and add opportunistically on any weakness. Dollar-cost averaging is another potential strategy, as it allows investors to build a position over time, adding more shares when the price is lower and fewer when the valuation is higher. I stand by the assertion that being a Palantir shareholder isn't for the faint of heart. That said, for those who adopt a long-term outlook and can withstand the inevitable volatility, I expect it to be a profitable investment 10 years from now.

1 Unstoppable Artificial Intelligence (AI) Stock to Buy Before It Soars 178% to a $1 Trillion by 2028, According to 1 Wall Street Analyst | The Motley Fool

Decades of experience and a novel approach could drive this AI specialist much higher. There's no question that one of the overriding themes driving tech stocks over the past few years is advancements in artificial intelligence (AI). In fact, nine of the world's top 10 most valuable companies all have close ties to AI, and others are climbing the ranks at a dizzying pace. Chipmaker Nvidia (NVDA 1.75%) recently won the footrace to become the world's first $4 trillion company. Microsoft and Apple are close behind, currently boasting market caps of $3.8 trillion and $3.2 trillion, respectively. Rounding out the top five are Amazon and Alphabet, worth $2.4 trillion and $2.3 trillion, respectively. With a current market capitalization of just $359 billion, it may seem premature to suggest that Palantir Technologies (PLTR 0.26%) is on track to earn its place in the $1 trillion club. Yet, while many companies are still developing their AI strategy, Palantir has developed a unique approach that is both successful and extremely profitable. Palantir only joined the ranks of publicly traded companies in 2020, but has been developing AI out of the spotlight for more than 20 years. While the company cut its teeth crafting AI tools for the U.S. government and its allies, it has since focused on enterprise solutions that provide actionable intelligence for businesses. Given its extensive work in the field, it should come as no surprise that Palantir was able to lean into its decades of expertise when generative AI emerged in late 2022. The company moved quickly to capitalize on the opportunity, developing its Artificial Intelligence Platform (AIP), which leverages generative AI to develop solutions for company-specific problems. However, it was the company's novel approach that was a stroke of sheer genius. Palantir hosts "boot camps," or workshops to demonstrate the utility of AIP and develop a customized approach to meet the specific needs of its customers. During these sessions, users work alongside Palantir engineers to create solutions for real-world business problems. This strategy has supercharged Palantir's results. In the first quarter, Palantir's revenue of $884 million marked an increase of 39% year over year and 7% sequentially. But that tells only part of the story. The biggest contributor was its U.S. commercial revenue, which jumped 71% to $255 million, and represented 29% of total revenue, thanks to a strong demand for AIP. The segment ended the quarter with contract value of $810 million, up 183% year over year. This helped fuel Palantir's growing remaining performance obligation -- or contractually obligated sales that aren't yet included in revenue -- which climbed to $1.9 billion, up 46%. This helps provides keen insight into future results, since the company has yet to recognize this revenue. Furthermore, Palantir again increased its guidance, forecasting at least 68% growth for the U.S. commercial segment -- which includes AIP -- for 2025, up from its previous outlook for 54% growth. Palantir's AI expertise and its ability to tap into the growing demand for AI solutions have been a boon to the company and shareholders, driving the stock up 1,920% since the advent of generative AI in late 2022. And that could be just the beginning. According to Wall Street, Palantir is forecast to generate sales of $3.9 billion in 2025, giving it a forward price-to-sales (P/S) ratio of about 91 (not a typo). Assuming its P/S remains constant, Palantir would have to grow its revenue to nearly $11 billion annually to support a $1 trillion market cap. Wall Street is forecasting annual revenue growth of 34.3% for Palantir over the next five years. If the company is able to grow at that pace, it could reach a $1 trillion market cap by 2029. Yet some believe Palantir's growth will continue to accelerate, which would make that timing conservative. Don't take my word for it. Wedbush analyst Dan Ives has crunched the numbers and believes Palantir's market cap could hit $1 trillion between 2027 and 2028. Ives argues that the AI revolution will continue to drive growth. He goes on to say that those focused solely on valuation have missed "every transformational tech stock over the past 20 years." Ives has also gone on record saying, "We believe the Street is underestimating the $1 billion-plus revenue stream that Palantir's AIP U.S. commercial business can evolve into over the next few years." Palantir's results seem to support that view, as revenue and earnings-per-share growth have continued to accelerate in each of the past nine quarters. To be clear, the stock's valuation is enough to make any value investor run for cover. Palantir is currently selling for 91 times forward sales and 207 times next year's earnings. Multiples of that magnitude almost always lead to extreme volatility, and Palantir is no different. As such, the stock will be subject to big swings, both up and down, and isn't for the faint of heart. Investors wary of the valuation but still wanting get in on the action could buy a small stake or use a strategy of dollar-cost averaging to built a position over time. Estimates regarding the potential for generative AI abound, but no one knows for sure. One of the more conservative estimates posits the AI market could grow to between $2.6 trillion and $4.4 trillion annually, according to global management consulting firm McKinsey & Company. If the company can continue to accelerate its growth and fend off would-be rivals -- and I believe it can -- Palantir could achieve a market cap of $1 trillion over the next few years by merely continuing along its current growth trajectory.

After Soaring Nearly 100% So Far This Year, Where Will Palantir Stock Be at the End of 2025? | The Motley Fool

Outside of Nvidia, I'd argue that no other company has benefited from the tailwinds of the artificial intelligence (AI) revolution as much as data mining specialist Palantir Technologies (PLTR 2.59%). Over the last three years, shares of Palantir have gained more than 1,300%. Just this year alone, Palantir stock has rocketed by 97%. To put that into perspective, the S&P 500 and Nasdaq Composite indexes haven't even posted gains of 10% in 2025. While it can be tempting to follow the momentum in hopes of more outsize gains, smart investors understand that hope is not a real strategy. Let's explore the catalysts behind Palantir's generational run, and assess some recent trading activity to help discern whether Palantir stock could be headed even higher. When AI first started to emerge as the next megatrend during late 2022 and early 2023, investors were consistently bombarded with news around big tech's splashy investments in the space. Microsoft plowed $10 billion into OpenAI, the maker of ChatGPT. Both Amazon and Alphabet invested hefty sums into a competing platform, called Anthropic. Tesla was touting its advancements in self-driving cars and humanoid robots. You get the drift -- the AI narrative largely hinged on the moves big tech was making. But in the background, Palantir was building. In April 2023, the company launched its fourth major software suite -- the Palantir Artificial Intelligence Platform (AIP). As the graph above illustrates, Palantir was a relatively slow-growth, cash-burning enterprise prior to the release of AIP. But since AIP's launch a little more than two years ago, Palantir's revenue has accelerated considerably. On top of that, the company has been able to command improving unit economics underscored by a sweeping transition to positive net income and generating billions in free cash flow. At the end of 2022, Palantir had 367 total customers. As of the end of the first quarter this year, Palantir boasted 769 total customers. Perhaps even more impressive is that the company's commercial customers (non-government) have risen by more than twofold over the last couple of years. To me, AIP is serving as a gateway for Palantir to expand its reach beyond federal contracts with the U.S. military, which is what Palantir is best known for. AIP represents a transformational shift as a defense contractor to a more ubiquitous software platform capable of penetrating the private sector, despite relentless competition from larger companies such as Salesforce or SAP. As a Palantir bull myself, I've been blown away by management's ability to outmaneuver big tech and deliver on lofty growth targets time and again. But as an investor, I can't help but wonder if the company's share price trajectory is sustainable. In addition to analyzing financial trends and operating metrics, investors can augment their due diligence process by listening to how Wall Street analysts talk about a company or even dig into the trading activity of notable investors. Thanks to a nifty tool called a form 13F, investors can access an itemized breakdown of all of the buys and sells from hedge funds during a given quarter. During the first quarter, famed billionaire investor Stanley Druckenmiller sold out of his fund's Palantir position. In addition, Cathie Wood has been trimming exposure to Palantir in Ark's portfolio as well. On the flip side, billionaire investors Ken Griffin and Israel Englander both added to their funds' respective Palantir positions during the first quarter. Given these dynamics, it might be hard to discern how Wall Street really feels about Palantir. I think there are some nuances to point out given the details above. First, both Druckenmiller and Wood have been in and out of Palantir stock in the past -- this is not the first time each investor reduced their exposure to the data analytics darling. On top of that, I think Griffin's and Englander's activity should be taken with a grain of salt. Both investors run highly sophisticated, multistrategy hedge funds. From time to time, some of this activity may include being a market maker. Although it may appear bullish that Palantir stock is held in Griffin's Citadel and Englander's Millennium Management portfolios, I wouldn't quite buy that narrative. Neither fund is necessarily known for holding positions for the long term. Moreover, as a multistrategy fund with a number of different teams and objectives, I think that it's highly likely that Citadel and Millennium have a layered and complex hedge strategy when it comes to owning a volatile growth stock such as Palantir. The chart below illustrates institutional buying and selling of Palantir stock over the last few years. Given that buying (the purple line) remains elevated over selling (the orange line), this could suggest that Palantir remains a favorite among institutional portfolios. However, as I expressed above, not all hedge funds and money managers have the same strategy. In other words, some of this elevated buying could be part of a broader, more complex trading strategy and less so an endorsement of long-term accumulation. Over the last few months, Palantir stock has become increasingly more expensive. In fact, the company is trading well beyond levels seen during peak days of the dot-com or COVID-19 bubbles. While it's impossible to know for certain where Palantir stock will be trading by the end of the year, smart investors know that nothing goes up in a straight line forever. A good indicator for how investors feel about Palantir's prospects should come after the company reports second-quarter earnings in a couple of weeks. As a reminder, shares fell off a cliff for a brief moment following the company's first-quarter blowout report. Expectations are rising with each passing report, and I would not be surprised to see Palantir stock sell off again -- even if its Q2 results are stellar. Given the convergence between institutional buying and selling, combined with Palantir's increasingly expensive valuation, I can't help but be cautious at this point. I do think a valuation correction could be in store sooner or later and would not be surprised if shares are trading for a considerably lower price by the end of the year.

Why Palantir Is Still A Buy After The Strong Bull-Run (NASDAQ:PLTR)

U.S. commercial business grew 65% YoY, surpassing a $1 billion run rate with 432 customers and rising contract value. Palantir's (NASDAQ:PLTR) surge reflects growing recognition of its being the enterprise AI control center, spurring in-world decision-making in verticals like the military, pharmaceuticals, and banks. While the upsurge in the stock spawns rightful doubts about valuation, offsetting fundamentals, such as expanding margins, brisk commercialization, and I began investing early, inspired by the strategies of legendary investors like Warren Buffett, Peter Lynch, and Howard Marks. What started as a personal interest quickly became a disciplined, research-driven pursuit of long-term value and strategic growth. Over the years, I've developed a fundamental, bottom-up investing approach, with a keen focus on market psychology, business durability, and valuation discipline. While I study multiple sectors, I specialize in tech, particularly underappreciated or contrarian plays in software, semiconductors, and emerging innovation. I'm drawn to companies with scalable models, durable moats, and misunderstood narratives. I look for value the market hasn't fully priced in and prefer digging through overlooked names with long-term potential rather than chasing trends. Through my research at Infinity Curve, I explore how investing success rarely follows a straight line, it's a nonlinear process shaped by cycles, feedback loops, and constant recalibration. Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.