Palantir Technologies (NASDAQ: PLTR) has emerged as a significant beneficiary of the artificial intelligence (AI) boom. The company, specializing in data mining and AI, has seen its stock rise by 333% over the past year. A key driver of this growth is Palantir’s Artificial Intelligence Platform (AIP), which empowers customers with AI capabilities. The company has reported seven consecutive quarters of accelerating revenue growth and 13 quarters of GAAP profitability. Its inclusion in the S&P 500 and Nasdaq 100 has further fueled investor confidence. However, concerns persist as the stock’s valuation soars to 183 times next year’s expected earnings, especially amid plans by the Trump administration to cut defense spending by 8% annually. This has led to unease among even bullish investors. Palantir’s U.S. commercial segment, including AIP, has become a crucial growth engine, with U.S. commercial revenue surging 64% in Q4, contributing 26% to total revenue. Investors are advised to monitor the revenue growth rate in this segment closely, as any deceleration could trigger a significant sell-off given the stock’s high valuation. — news from Nasdaq
