Is Palantir a Good Stock to Buy?

One of the astir absorbing aspects from the emergence of artificial quality (AI) is however the exertion has allowed immoderate companies to reinvent themselves. Take Palantir Technologies (NASDAQ: PLTR) arsenic a premier example.

Prior to the AI revolution, Palantir was mostly seen arsenic a secretive data-mining institution that worked intimately with the Department of Defense (DOD). But today? The institution seems to beryllium everywhere. Beyond the defence landscape, ample backstage enterprises crossed healthcare, fiscal services, manufacturing, and much are touting unprecedented ratio gains acknowledgment to Palantir's Artificial Intelligence Platform (AIP).

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Let's look astatine what makes it unsocial and analyse however AI has go a bellwether for the company. From there, we'll bash immoderate valuation investigation to assistance find if Palantir is simply a bully acceptable for your portfolio.

One of the astir wide inventions from AI truthful acold is the ample connection exemplary (LLM), specified arsenic ChatGPT, Gemini, oregon Claude. They employment generative AI to assistance users execute tasks much efficiently.

Besides answering a wide query, LLMs tin beryllium integrated with adjacent bundle programs to assistance digest ample volumes of data. In turn, generative AI tin usage this accusation to assistance engineers constitute bundle codification oregon assistance a information idiosyncratic successful rapidly sifting done analyzable inputs to much easy get astatine an optimal solution to a blase problem.

Palantir focuses connected designing ontologies, which are elaborate visualized maps that tin zoom successful connected a company's astir granular levels of data. This is advantageous due to the fact that it helps decision-makers exemplary and simulate antithetic scenarios based connected real-time information, arsenic opposed to being stuck with a backward-looking dashboard tool.

Given however broad-based Palantir's AIP level is, it's not astonishing that Wall Street sees a immense opportunity. Morningstar expert Mark Giarelli writes that "anywhere from $1.2 trillion to $1.8 trillion is possible" for Palantir's full addressable marketplace (TAM).

On Feb. 2, absorption reported net for the 4th fourth and afloat twelvemonth 2025. Spoiler alert: Palantir knocked the screen disconnected the ball. For the afloat year, gross grew 56% twelvemonth implicit twelvemonth to $4.5 billion. The company's non-government conception is thriving, with U.S. backstage assemblage income increasing 109% twelvemonth implicit twelvemonth to $1.5 billion.