Palantir's Stock Surge Amidst AI Boom: Growth, Valuation, and Market Position

Palantir Technologies Shares Are Up Today: What's Going On? - Palantir Technologies (NASDAQ:PLTR)

How to Spot the Market Bottom: Matt Maley has navigated every major market turn in the last 35 years, and on Wednesday, March 26, at 6 PM ET, he's revealing how to recognize when the worst is over, the trades to make before the next bull market takes off, and the stocks and sectors that will lead the recovery. Palantir Technologies Inc. PLTR is continuing its strong upward trajectory Monday driven by increasing investor confidence in its AI capabilities and government contracts. What To Know: CEO Alex Karp's latest book, "The Technological Republic," sparked debate, with Harvard economist Jason Furman criticizing its emphasis on cultural solutions over concrete policy recommendations. Furman argued that the book advocates for a stronger connection between the government and tech to address national security and climate challenges but dismisses market mechanisms and lacks substantive policy proposals. While he acknowledged some merit in the book's cultural arguments, he found the absence of actionable solutions problematic. Palantir's stock continues to gain momentum, fueled by its growing influence in the AI sector and expanding government partnerships. The company's market capitalization has now surpassed Lockheed Martin and analysts expect further growth. Wedbush Securities' Dan Ives has called Palantir the "Messi of AI," predicting that 2025 will be a breakout year for its AI platform. Karp's personal wealth has also skyrocketed, with his stake in Palantir increasing from $2.2 billion at the start of 2024 to $12.8 billion. The company is set to join the S&P 100, a move that further solidifies its rising status. PLTR Price Action: Palantir shares closed Monday up 6.37% at $96.75, according to Benzinga Pro. Read Next: US Business Activity Rebounds As Services Growth Outpaces Forecasts, Yet Cost Pressures Intensify Photo: Shutterstock. PLTRPalantir Technologies Inc$96.846.46%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum98.96Growth87.14Quality-Value3.03Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Palantir Market Cap Surges Over $50 Billion In 2025: Won't Be A 'Seller,' Says Analyst As He Foresees PLTR As An AI Play - Palantir Technologies (NASDAQ:PLTR)

Despite market fluctuations, the shares of Palantir Technologies Inc. PLTR have risen on a year-to-date basis and the company has added about 29.45% in investor wealth in 2025. This analyst remains positive and says that he won't be a "seller" at these levels. What Happened: According to Kenny Polcari, the chief market strategist at Slatestone Wealth, PLTR has come back to fill the gap after the explosion it saw at the start of February. Palantir provides data analytics tools to government customers for intelligence gathering, counterterrorism, and military purposes. The stock price declined sharply in early February due to two key factors: President Donald Trump's directive, implemented by Defense Secretary Pete Hegseth, to reduce the defense budget by 8% annually for five years; and CEO Alex Karp's announcement of a plan to sell up to 9.98 million shares by September. "You always want to see a stock fill the gap that it created, whether it's on the downside or the upside, you want to see it come back and fill it and test, which is exactly what it did," said Polcari. Furthermore, he said, "PLTR's going to be a name that's going to play a significant role in the global economy and in AI for a long time," adding that "I wouldn't be a seller of this name". See Also: Mark Cuban Questions Motives Of Elon Musk-Led DOGE's 'Turnaround' Efforts, Asks 'Who Will Be Worse Off?' In The US Economic Shift Why It Matters: PLTR's market capitalization stood at $170.18 billion as of Dec. 31, 2024, and it currently stands at $220.30 billion. This represents a growth of $50.12 billion or 29.45% on a year-to-date basis. Its stock price has risen by 28.67% in 2025, whereas it has gained 294.74% over a year. However, it is still 22.85% down from its 52-week high of $125.41 apiece. The stock rose 6.37% on Monday as it joined the S&P 100, a subset of the S&P 500, during its quarterly rebalancing. This inclusion is expected to increase institutional investor interest and drive ETF purchases, potentially boosting Palantir's stock. However, any short-term "index effect" gains are likely to be temporary, with long-term performance depending on revenue and profitability. Benzinga's Edge Rankings show a strong price trend in the short, medium, and long term. Its momentum ranking which shows whether the stock is in an upward or downward trend was sturdy at 98.96 percentile. The growth ranking which combines historical expansion in earnings and revenue across multiple periods was also solid at 87.14 percentile. Check out its valuation scores and other fundamentals here. Its consensus price target was $69.57, with a 'sell' rating, based on the 25 analysts tracked by Benzinga. The price targets ranged from a low of $7.5 to a high of $125. The latest ratings from Loop Capital, and Wedbush averaged $128.67, implying a 33.97% upside. Read Next: Gold Nears $3,100 Mark As US Accelerates Repatriation Amid Tariff Fears, Possibility Of An Audit Photo courtesy: Shutterstock PLTRPalantir Technologies Inc$96.045.58%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum98.96Growth87.14Quality-Value3.03Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Is Palantir Technologies Stock a Buy Now? | The Motley Fool

The AI stock is heating up again after tumbling nearly 40% from its high. Long-term investors generally try not to think too much about a stock's short-term price movement. Still, it's hard to ignore a stock going through the volatility Palantir Technologies (PLTR -4.33%) has seen in 2025. The artificial intelligence (AI) stock surged as much as 1,840% since the start of 2023. However, when volatility hit the market beginning in February, the stock quickly shed as much as 40% of its value from the highs. These whiplash movements can be emotionally draining for investors. Now, the stock seems to be springing back. Palantir has already pulled back about half of those recent losses, leaving investors wondering whether they should buy before it ascends to new highs. So, should you buy Palantir stock now? Palantir builds custom software applications for government and commercial customers. This software uses analytics, machine learning, and artificial intelligence (AI) to turn an organization's data into actionable insights in real-time. It makes Palantir's software flexible. Some of Palantir's use cases include optimizing supply chains, managing hospitals, detecting financial fraud, and aiding military intelligence and mission operations. Palantir's growth has continuously accelerated since the company launched its AIP platform for AI applications in mid-2023: Investors have flocked to the stock because they expect the company's growth to last for years. Such flexible technology opens up a vast addressable market. Palantir's customer count grew 43% in the fourth quarter of 2024 to 711. There are 20,000 companies with at least 500 employees in the United States alone, which shows how much room for expansion remains in the private sector. Palantir's early years centered around government work, and it's still growing there. Revenue from the U.S. government grew 30% year over year in Q4 and totaled $1.2 billion last year. Palantir's companywide revenue won't accelerate forever, but it seems clear that it has established itself as a leader in AI software and its application to real-world use cases. There's a tremendous market for that, so Palantir's success these past two years is no fluke. Now, it's time to separate the stock from the business, and that's where some red flags appear. The share price has risen about 1,400% since the start of 2023, but Palantir's trailing-12-month revenue has only grown 40%, and net income has grown 213%. In other words, the stock is growing faster than the business. When that happens, investors are essentially paying for business results further into the future. That's a dangerous game because there's more time for things to go wrong. Perhaps Palantir's growth slows, or the broader market crashes. There is also opportunity cost because you could earn a return on your money in another stock while waiting for Palantir's business to catch up to its share price. Palantir currently trades at a price-to-sales ratio of 81. That's an excessive valuation by virtually any comparison. Even Nvidia, arguably the most dominant AI stock of the past three years, topped out at a P/S ratio of 45; Palantir is nearly twice that. Palantir's price-to-earnings ratio is over 500. That's irrationally high for a company analysts estimate will grow earnings by an average of 25% annually over the long term. Even 50% annualized earnings growth wouldn't justify the current valuation. The last straw I found was the company's aggressive stock-based compensation, which effectively causes share dilution that will diminish the stock's per-share financials and, thus, its investment returns over time. The more shares there are, the more revenue and profits are spread across the shareholder base. Palantir's $691 million in paid trailing-12-month stock-based compensation represents an eye-watering 24% of revenue. Nvidia's stock-based compensation is just 3.7% of its trailing-12-month sales. Can Palantir Technologies continue ascending and reach a new all-time high? Of course! The market can do funny things, and I wouldn't pretend I can predict them. But looking at the fundamentals, it's evident that Palantir's stock is egregiously overvalued and susceptible to further declines as soon as sentiment, either across the market or toward Palantir specifically, turns south. Palantir Technologies is an exciting company, but its stock is not a buy now. Investors should consider waiting for a far better entry point, which may not come without a dramatic pullback from where it's already dipped in recent weeks.

Why Palantir Technologies Stock Rallied on Monday

The catalyst that sent the artificial intelligence (AI) software and data mining specialist higher was its addition to an elite group of stocks. The S&P 100 The S&P 500 (^GSPC 1.60%) is the most widely acknowledged benchmark for the U.S. stock market, consisting of the 500 biggest companies in the country. The S&P 100 is a subset of those stocks, made up of the 100 largest companies in the index. Palantir joined the ranks of this elite group on Monday to coincide with indexes' quarterly rebalancing. While this might seem much ado about nothing, there are certain benefits to being admitted to the benchmark. The move will likely attract the attention of hedge funds and institutional investors, generating additional demand for the stock. Furthermore, exchange-traded funds (ETFs) that track the index will be forced to buy shares of Palantir, as their holdings mirror that of the index. On the other hand, any so-called "index effect," which boosts the stock price over the short term, tends to diminish over time as investors focus on revenue growth and profitability. Strong financials for Palantir Palantir continues to make impressive strides in that department. In the fourth quarter, revenue of $828 million grew 36% year over year, while its adjusted earnings per share (EPS) of $0.14 surged 75%. The impressive growth was fueled by a rapid increase in customers and robust demand for the company's Artificial Intelligence Platform (AIP), which uses company-specific data to help management make data-driven decisions. If there's one drawback associated with Palantir, it would have to be the company's valuation, which isn't for the faint of heart. It currently sells for 171 times forward earnings and 47 times forward sales, so Palantir isn't cheap. That said, the stock's recent decline brought its forward price/earnings-to-growth (PEG) ratio -- which factors in the company's impressive growth -- to 0.9, when any number less than 1 suggests a stock that is fairly valued. Given the recent sell-off and strong runway for growth ahead, it might finally be time to start looking at Palantir.

Palantir Technologies Is Down 27% From Its All-Time High. Is It Still in a Bubble?

Palantir (PLTR 5.02%) stock appeared to be in a bubble at the start of the year. Investors' expectations were incredibly high, and the valuation looked inflated. Following the hefty sell-off that hit most artificial intelligence (AI) stocks, however, Palantir is down 27% from its all-time high. Some investors may see this decline as a sign the stock may be ready to roar again. However, even an ideal outlook hints that there could be more pain ahead. Palantir's software is in huge demand Palantir has become one of the hottest AI stocks on Wall Street. Its data analytics software has been around for a long time and was originally catered to government agencies. But in recent years, Palantir has expanded rapidly into the private sector. While Palantir's base product is a strong selling point, the biggest hit lately has been its Artificial Intelligence Platform (AIP). AIP allows its users to do several things, but model integration and AI agents are the two most noteworthy. By integrating various AI models throughout an employee's workflow, Palantir's clients can control what sensitive information is fed into an AI model rather than having all of it shared with a third-party. Additionally, users can program AI agents to do tasks that humans normally would do, freeing them up to do work that requires more original thinking. AIP has been a huge growth driver for onboarding new commercial clients, but it also has been a way to expand government clients' spending. This dual-market approach has fueled Palantir's massive growth as both sectors ramp up their AI spending. Palantir's government revenue rose 40% year over year to $455 million in Q4, while commercial revenue grew 31% to $372 million. But after six straight quarters of accelerating revenue growth, the question remains: Is it enough? The stock is still in a bubble Stocks enter a bubble when expectations outweigh reality. After Palantir logged a more than 1,800% gain in just over two years, this was absolutely the case as the stock traded for more than 100 times sales at its peak. Data by YCharts. Although the recent sell-off may appear to be an opportunity to buy the stock at a discount, shares are still far too expensive. To understand what kind of growth a 78 times P/S multiple conveys, let's model out the best-case scenario for Palantir based on these three assumptions: That's truly a best-case scenario for the stock: The growth rate is higher than even what the company predicts. Management has guided for approximately 31% revenue growth this year, while Wall Street analysts believe Palantir will grow 32% in 2025 and 27% in 2026. Additionally, the 30% profit margin is a level that only the best software companies achieve, and Palantir's 16% margin isn't close to that right now. Regardless, if Palantir somehow achieves those figures, it will produce $15.4 billion of revenue and $4.6 billion in net income by 2029, a huge increase from the $2.9 billion and $462 million, respectively, reported for 2024. However, based on the company's current market capitalization of $213 billion, those 2029 estimates give the stock a price-to-sales (P/S) ratio of 13.8 and a price-to-earnings (P/E) ratio of 46.2. Both figures still represent a significant premium to the broad market, and they're based on absolute best-case scenarios for revenue growth and profit margins. Meanwhile the share count and stock price would have to remain unchanged. In all reality, well over five years of bullish growth are baked into Palantir's stock price right now, which is far too much of a premium to pay. Investors should avoid the stock while it's still in its current bubble. There are better stocks to be buying in this marketwide sell-off.

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

From its launch in late 2020 to March 24, 2025, Palantir Technologies (PLTR 6.43%) stock has returned an impressive 952%. That means that if you invested $10,000 at its IPO, you would now have a whopping $105,200. This example highlights the life-changing potential of stock market investing and the importance of having a long-term perspective. That said, Palantir's past performance doesn't guarantee its future performance -- especially as challenges like government downsizing and possible overvaluation chip away at its growth thesis. Let's dig deeper to find out what the next half decade could have in store for the company. While Palantir's stock performance makes it look like an unstoppable technology monster, the reality is a little more complicated. While the company posts respectable growth, it isn't fantastic. Palantir's fourth-quarter sales jumped 36% year over year, driven by the rising adoption of its AI data analytic tools by the government and commercial clients, while its net income fell 21% year over year to $76.9 million. To put this performance in context, Nvidia (another top-performing AI stock) saw its fourth-quarter sales jump by 78% year over year to $39.3 billion, while net income soared by 80% to $22.1 billion. The chipmaker enjoys a significantly higher growth rate than Palantir, even though both equities have similar performance. The difference is valuation. While Nvidia stock trades for a relatively modest price-to-earnings (P/E) of 40, Palantir trades for a whopping 460 times its earnings over the trailing 12 months, making it likely one of the most overvalued companies available. Unfortunately, there is very little to justify this dynamic. Stocks can attract premium valuations when the market expects their growth to accelerate in the future. And Palantir's recent rally can be linked to optimism surrounding Donald Trump's election victory. The company's co-founder, Peter Thiel, is an outspoken supporter of the president and Vice President, JD Vance, who worked for him at Mithril Capital. However, investors should approach politics with caution. While Palantir is a government contractor, having friends in high places might not actually create shareholder value. According to CEO Alex Karp, Thiel's outspoken political involvement made it harder for Palantir to get things done during the first Trump administration. The company faced employee backlash over its work with Immigration and Customs Enforcement (ICE). Other examples, like Tesla, Disney, and Anheuser-Busch, highlight the brand risk that can occur when corporations appear to take sides in controversial and politically partisan issues. Furthermore, Trump's policies may not actually benefit Palantir's business. The new administration (with help from the Department of Government Efficiency) has worked to downsize the public sector. Most notably, the Pentagon plans to slash its budget by 8% over the next five years in a move that could jeopardize a significant source of Palantir's sales. Palantir's current valuation seems to price in a dramatic increase in top and bottom-line growth. And it's hard to see this happening. The U.S. government is downsizing, and the company faces competition in the private sector from similar rivals like Snowflake and Microsoft Fabric. Its founder's political affiliations could introduce even more risk. With all this in mind, Palantir's stock is unlikely to replicate the incredible returns it enjoyed over the previous five years. And investors should stay far away until its inflated price tag comes back down to earth.

Meet the Newest Stock in the S&P 100. It Soared 430% Since the Start of Last Year, and It's Still a Buy Right Now, According to 1 Wall Street Analyst.

This artificial intelligence (AI), data mining, and software specialist was added to the benchmark S&P 100 index after years of impressive growth. The S&P 500 (^GSPC 1.76%) is the most widely recognized benchmark of the U.S. stock market, made up of the 500 largest companies in the country. Given the scope of its member companies, it is considered by many as the most dependable gauge of overall stock market performance. To be included in the S&P 500, companies must meet the following requirements: The S&P 100 is a subset of that benchmark and represents the largest, most well-established companies in the index. Palantir Technologies (PLTR 6.43%) is one of the newest additions to the S&P 100, joining its ranks on March 24, making it one of just three companies to make the cut so far this year. Since the beginning of 2024, Palantir stock has surged 430% (as of this writing), as the rapid and continuing adoption of generative artificial intelligence (AI) has fueled greater sales and accelerated its profits. Yet despite its breathtaking move higher, some on Wall Street believe there are additional gains ahead. Let's look at why Palantir stands out and whether the stock is still a buy. AI before the technology went viral Palantir has been at the cutting edge of AI development for more than two decades. The company was among the first to create state-of-the-art algorithms used by the U.S. government and its allies to scour mounds of data to detect patterns among seemingly unrelated data to identify and prevent potential terrorist attacks. It didn't take long for Palantir to discover that this same technology had game-changing applications for enterprise-level business. By aggregating information from legacy and current systems, these algorithms could then surface important data that might otherwise be missed, providing companies with actionable intelligence. In response to the demand for generative AI tools, the company developed its Artificial Intelligence Platform (AIP), which helps businesses make data-driven decisions. In one example, Palantir shows how AIP can harness business-specific information to prepare for a hurricane that will shutter production. The model scans existing orders, proposing which ones to delay, cancel, or accelerate, and which can be shipped from an alternate warehouse or fulfillment center. The system also provides detailed data on how each of these decisions would impact the bottom line. Any new or complex technology can be intimidating and also raise questions about its potential return on investment. To address those concerns, Palantir offers AIP boot camps for developers and executives who work side by side with Palantir engineers to address real-world, company-specific issues. This approach has catapulted the company's results to the next level. In the fourth quarter, Palantir's customer count increased by 43% year over year and 13% quarter over quarter. Its AIP training sessions helped Palantir close 129 deals worth at least $1 million, 58 deals worth $5 million or more, and 32 deals worth at least $10 million. Many of those agreements came within just weeks after customers attended an AIP boot camp. Furthermore, the company's quarterly report is brimming with customer testimonials attesting to the game-changing nature of its technology. The utility of its AI system is having a notable impact on Palantir's overall results. In the fourth quarter, revenue of $828 million grew 36% year over year and 14% quarter over quarter, resulting in the company's ninth consecutive quarter of profitability. U.S. commercial revenue, fueled by AIP, grew 64% year over year, while its customer count grew 73%. The remaining deal revenue (RDV) for the segment, which is the remaining value of contracts not yet recognized as revenue, grew 99%. Yet the adoption of AI has only just begun. Big Four accounting firm PwC estimates that AI will contribute $15.7 trillion to the global economy by 2030. Companies that aren't positioned for the future risk being left behind. Thanks to its decades of experience in the field, Palantir is well positioned to profit from this paradigm shift in technology. The future is bright, but... I'm not the only one who thinks so. Loop Capital analyst Mark Schappel maintains a buy rating on Palantir stock, with a Street-high price target of $125. That represents potential upside of 37% compared to Friday's closing price. The analyst says that Palantir is "setting the agenda in enterprise AI" and goes on to note that AIP "essentially sells itself." Schappel acknowledges the "recent multiple compression," citing fear of U.S. government spending cuts. All that said, there's one obvious disadvantage to an otherwise glowing investing thesis: Palantir stock is currently selling for 193 times forward earnings and 45 times next year's sales, making it egregiously pricey in terms of the most widely used valuation metrics -- and subject to extreme volatility. However, its forward price/earnings-to-growth (PEG) ratio -- which factors in its accelerating growth -- is 0.84, when any number less than 1 is the benchmark for an undervalued stock. For investors willing to take on some additional risk with the potential for greater reward, Palantir is a good bet on the AI revolution.

Why Is Everyone Talking About Palantir's Stock? | The Motley Fool

Palantir (PLTR -4.71%) has been one of the hottest stocks in town, more than tripling its share price over the last 12 months. Its strategic position as a leader in the artificial intelligence race as well as its significant exposure to the public and private sectors have the market's hopes regarding its longer-term prospects soaring. Let's explore those aspects more deeply to help investors better understand the opportunity ahead for this tech company. Founded in 2003, Palantir built software to help the U.S. government with its intelligence work. Over time, the tech company expanded into other parts of the public sector and later into the private sector. Palantir's value proposition to its customers is simple. It helps organization analyze their vast and complex datasets to make better decisions. It does this via its four major platforms: Gotham, Foundry, Artificial Intelligence Platform (AIP), and Apollo. Gotham primarily serves the defense industry, while Foundry focuses on the commercial sector. To ensure that Gotham and Foundry can deliver the best services, Palantir leverages Apollo to provide rapid and secure updates to its customers, regardless of their working environment. The final platform, AIP, is Palantir's latest offering for artificial intelligence (AI) technologies, such as generative AI. Using AIP, existing customers (running on Gotham or Foundry) can quickly deploy and run the latest AI technology on top of their data infrastructure, ensuring the transition is as seamless as possible. To use Palantir's services, customers usually enter into one to five-year contracts with the company. In the year ended Dec. 31, 2024, 55% of Palantir's revenue came from government customers, while the rest came from commercial users. Geographically, the U.S. accounted for 66% of revenue, and the remaining came from overseas. Palantir has been a successful growth company, with revenue expanding by 50% in the last two years alone. While impressive, investors think the company has yet to reach its full potential. The most significant opportunity for Palantir lies in the ongoing development and adoption of artificial intelligence technologies. According to Statista, the global AI market will be more than $800 billion by 2030, up from $244 billion in 2025. As one of the early movers in offering data analytic software solutions (and now AI), Palantir is strategically positioned to leverage its technology know-how, solid reputation, and extensive relationships with government and commercial clients to build a sizable market share in this emerging industry. While it's still in the early days, there are signs that Palantir is already gaining momentum in this revolution. For instance, U.S. commercial customer count and revenue surged 73% and 64% year over year in the fourth quarter of 2024. The number of commercial deals closed in that quarter was 188, up 45% compared to the same period in 2023. The rise of AI will also help Palantir build a sizable commercial business that rivals its government business. Expanding this segment is essential as the opportunity in the private sector is as significant (if not more) than the public sector, so it's natural for the tech company to generate at least 50% of its revenue from private customers. By offering customers the entire stake of tools (Foundry and AIP), Palantir stands a better chance at attracting and retaining new commercial customers. It is also worth mentioning that while Palantir's government business is already massive, there are ample opportunities to grow that business. One thing is that there are rising concerns about the unsustainability of government spending -- think Elon Musk's DOGE role -- suggesting that the demand for world-class software to improve the efficiency of the public sector will grow with time. Besides, the ongoing geopolitical tension will keep global defense spending high (and potentially increasing in the years to come), which could boost demand for Palantir's defense-related offerings. In short, the future looks exceptionally bright for Palantir, both in the public and private sectors. Palantir has come far from its initial role in serving government customers. While it has been successful thus far, its future is even brighter as it rides on trends like the advancement of AI, ongoing geopolitical tension, etc. Investors looking for an AI software company should closely watch Palantir.

After the Recent Stock Market Drama, Where Will Artificial Intelligence (AI) Leader Palantir Be in 5 Years? | The Motley Fool

Palantir Technologies (PLTR -4.71%) started 2025 with a bang, jumping more than 60% in just over two months on the back of a solid quarterly report that was released at the beginning of February, but the stock has witnessed a remarkable pullback since hitting a 52-week high on Feb. 18. Specifically, Palantir stock is down 22% from its 52-week high. The decline can be attributed to multiple factors such as the overall negativity in tech stocks from the uncertainty caused by tariffs and other policies that are expected to weigh on the U.S. economy. And there has been a rise in the probability of a recession in the U.S. because of the potential direction that the economy is expected to take. All this explains why investors may have decided to book profits in Palantir stock, especially after the massive gains that it delivered in the past year. Again, its expensive valuation could be another reason behind its recent pullback. However, savvy investors will do well to keep an eye on Palantir stock and consider buying it if it continues to take a beating on the market. That's because the company is sitting on a tremendous growth opportunity that could send its shares soaring over the next five years. Palantir released its fourth-quarter 2024 results on Feb. 3. Annual revenue landed at $2.87 billion, up by 29% from the prior year. What's worth noting is that the company's revenue growth accelerated through the year. Its top line jumped by 36% in the final quarter of the year. Looking ahead, Palantir seems well placed to witness continued acceleration in growth since it is considered to be the leading provider of artificial intelligence (AI) software platforms. Various third-party estimates have ranked it as the No. 1 vendor of AI software platforms. This puts the company in position to make the most of a market that's expected to generate $153 billion in revenue in 2028, with a compound annual growth rate of nearly 41%. At this pace, the AI software platforms market could exceed $300 billion in revenue by the end of the decade. Palantir's revenue pipeline is now growing almost in line with the pace at which the AI software platforms market is forecast to grow. This is evident from the 40% year-over-year increase in its remaining deal value (RDV) in the previous quarter to $5.43 billion. That was nearly double its full-year revenue and higher than the top-line growth it reported for the full year. The robust growth in this metric is great news for Palantir investors. That's because RDV refers to the total value of the company's contracts that are yet to be fulfilled. More importantly, there was a remarkable acceleration in RDV last quarter when compared to the 22% year-over-year increase in the third quarter of 2024. This jump in the number of contracts that Palantir is signing can be attributed to the popularity of its Artificial Intelligence Platform (AIP), which enables customers to integrate generative AI solutions into their operations. AIP is not only helping Palantir attract new customers but is also encouraging its existing customers to expand the adoption of its generative AI platform, thanks to the productivity gains that it delivers. For instance, management said on the February earnings conference call: "Panasonic Energy North America is seeing the effects of its AIP expansion as they've created a maintenance assistant to help 350 technicians in making 5.5 million batteries per day, resulting in reduced machine downtime, greater throughput, and rapid onboarding of new technicians." There were other such examples from management about how the productivity improvements that AIP is delivering have allowed it to land bigger deals with existing customers. These productivity gains can help expand the popularity of AIP because the productivity improvement that AI is expected to drive in the future is going to be one of the biggest reasons behind the adoption of this technology. Market research firm IDC estimates that every $1 spent on AI-focused business solutions could generate $4.60 in value by 2030. So, don't be surprised if Palantir maintains outstanding growth for the next five years. We have seen that the market for AI software platforms is expected to increase by 41% through 2028. Based on IDC's estimate that this market was worth $28 billion in 2023, a 41% growth rate last year would have brought the market size for AI software platforms to almost $40 billion. Assuming all the revenue that Palantir generated in 2024 was from the sales of AI-related solutions, its share of this market would stand at just over 7%. If it manages to increase its market share for AI software platforms to 10% by the end of the decade, its top line could jump significantly and may exceed $30 billion (based on the earlier calculation that this market could hit at least $30 billion in revenue in 2030). That would be more than 10 times the company's revenue in the previous year, and the stock market could reward such outstanding growth with healthy gains in the long run. As such, accumulating this AI stock on the dips could turn out to be a smart move because the recent weakness in Palantir's shares may not last for long.

Goldman Sachs analyst revisits Palantir Technologies stock price target

Palantir Technologies shares moved lower in early Friday trading amid questions over the pace of AI investment, tied in part to CoreWeave's shaky IPO, and a note from Goldman Sachs that questions developments in its core technology. Palantir (PLTR) uses its artificial intelligence platform, known as AIP, to help clients pull together disparate collections of data into a single model that they then can build, train and deploy in their day-to-day processes. Palantir also touts the benefits of its ontology offering, a framework that helps represent and connect real-world entities, data, and processes for its commercial clients. Last month, the Denver-based group, which was founded by the tech investors Peter Thiel and Joe Lonsdale, posted stronger-than-expected fourth quarter earnings of 14 cents per share, with revenues rising 36% from the year-earlier period to $827.5 million, thanks in part to a surge in demand for AI-related products offered by its commercial business. Palantir forecast 2025 revenue in the region of $3.75 billion, firmly ahead of the LSEG estimate. Commercial revenue is likely to rise 54% from 2024 to $1.08 billion. SOPA Images/Getty Images The stock has performed incredibly well as a result, rising 143% over the past six months, with a near eight-fold gain over the past five years, as investors rush to early adopters in the AI space. Its valuation, however, has expanded sharply as well, raising questions over the sustainability of its stock performance given that its trades at a 477x multiple to forward earnings, compared to around 38x for Nvidia (NVDA) and 32x for Microsoft (MSFT) . Investors have also been spooked by comments from Defense Secretary Peter Hegseth, who has vowed to take around 8%, or $290 billion, out of the Pentagon budget over the next five years, a move that could affect one of Palantir's crucial revenue sources. The U.S. Department of Defense for around 17% of Palantir's overall revenue in 2024, and around 18% in 2023, according to its annual report. That's left the stock down nearly 27% since its all-time peak in mid-February. Related: AI reality bytes Nvidia-backed CoreWeave IPO Investors are also tracking developments in CoreWeave's Friday listing on the Nasdaq, after the Nvidia-backed cloud services group slashed its IPO price and lowered its valuation by around 35%, to $23 billion, amid questions over the pace of AI demand. Goldman Sachs analyst Gabriela Borges noted both the heady valuation and the group's ontology offering in reiterating her $180 price target and 'neutral' rating on Palantir in a note published Friday. In order to utilize AI, organizations need to structure and contextualize their data in a way that's accurate and operationally relevant, to enable custom workflows to reason through key business questions," Borges said. "Palantir's ontology has enabled data stitching and custom workflows since its early days, and with increased enterprise focus on AI, the company has emerged as platform capable of delivering fast time to value and tangible [return on investment]," she added. More AI Stocks: The analyst noted, however, that 'its core technical competencies have not fundamentally changed over the past year ... rather, the market has increasingly seen the value of an operation-centric data platform as enterprises look to embed AI applications." "Our positive view of Palantir's differentiated technology is balanced by our limited visibility into whether building custom AI workflows will become easier as the tech ecosystem matures," she added. Palantir shares were last marked 0.75% lower in premarket trading to indicate an opening bell price of $89.41 each. Related: Veteran fund manager unveils eye-popping S&P 500 forecast