Palantir Technologies (PLTR) has emerged as an early victor in the artificial intelligence (AI) upheaval, and this trend could persist. There’s been a significant surge in demand for its AI-enhanced software platform, which is assisting both governmental and commercial entities in making groundbreaking decisions. Consequently, both government and commercial income have been growing robustly, registering double-digit increases consistently over the quarters.
Given that the customers are still in the initial stages of adopting AI technology, investors can anticipate further growth for Palantir. This projection is backed by analysts’ predictions about the expansion of AI, as the total AI market is forecasted to surge from billions of dollars currently, to exceed $2 trillion in a short span of time.
It appears that investors are highly interested in Palantir’s stock, as it has skyrocketed by an impressive 1,300% over the past three years. With a potential catalyst on the horizon, one may wonder if more growth is imminent and whether purchasing the stock could be beneficial. To shed some light on this, let’s examine history for some insights.
Serving government and commercial customers
Initially, it’s beneficial to examine how a 20-year-old firm, previously known primarily for government contracts, has gained attention recently. While government contracts still play a significant role in the company’s operations, the surge of AI technology has expanded its customer base. As more companies and organizations strive to incorporate AI into their businesses, they are increasingly turning to Palantir.
This software firm specializes in assisting clients to gather and optimize their data, including information previously considered unreachable. Two years back, Palantir debuted its Artificial Intelligence Platform (AIP), harnessing the potential of artificial intelligence.
Here are a few illustrations demonstrating how this tool operates:
1. United Airlines utilized AIP to collect maintenance reports from the past ten years, which they used to create a predictive maintenance system for their aircraft fleet.
2. The Cleveland Clinic is leveraging AIP to improve patient placement and overall efficiency.
3. In strategic decision-making scenarios such as on the battlefield, AIP can be an invaluable ally for governments due to its ability to suggest potential decisions and outcomes.
Over the past few quarters, various factors have significantly boosted Palantir’s profits. Most recently, the firm announced a 71% surge in U.S. commercial revenue, a 45% rise in U.S. government revenue, and increased projections for full-year revenue, earnings from operations, and free cash flow. As stated by CEO Alex Karp, an overwhelming interest in AI has been fueling demand for Palantir’s services, and this trend could persist moving forward.
A potential catalyst on Aug. 4
Moving on to the events scheduled for August 4th, it’s worth noting that Palantir is set to disclose their second-quarter financial results. Given the company’s impressive track record in earnings and stock performance, one might ponder if the share price will surge following this report. Looking back at its past six reports, we can see how Palantir’s stock has generally fared over the subsequent two months:
| Earnings report | Performance over two months |
|---|---|
| Q1 2025 | +8.5% |
| Q4 2024 | -0.1% |
| Q3 2024 | +92% |
| Q2 2024 | +66% |
| Q1 2024 | +8% |
| Q4 2023 | +37% |
Based on historical patterns, it’s likely that Palantir’s stock will increase after its upcoming earnings report. This is exciting news for current shareholders and potential investors in the near future. However, it’s crucial to keep two points in mind.
While past events can provide insights into potential future outcomes, it’s important to note that stock market behavior is unpredictable and often deviates from historical patterns. Therefore, it might be hasty to invest in Palantir today, expecting immediate profits.
Holding for the long term
In simple terms, the short-term fluctuations in Palantir’s stock price over the next few months won’t significantly affect its long-term performance if you plan to hold onto it for several years. Therefore, there’s no need to hurry and buy the stock at a specific moment in anticipation of an immediate catalyst.
Considering all of this, is Palantir a buy? That depends on your investment style.
In simple terms, due to Palantir’s substantial increase in value, it may not be suitable for investors who focus on value. Given that it is considered a growth stock, its value can fluctuate significantly based on shifts in investor sentiment and economic indicators. As a result, more conservative investors might choose to stay out or only invest a minimal amount.
For investors prioritizing growth, purchasing Palantir today could be an excellent move, regardless of its potential performance post-August 4th. This is because it might still be in its initial stages within the rapidly expanding artificial intelligence market, offering significant future prospects.
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2025-07-23 10:52