Palantir (PLTR) stock has outpaced every S&P 500 name for two straight years—soaring 340% in 2024 and nearly doubling again in 2025.
At the center of this surge is its Artificial Intelligence Platform (AIP), now driving both government and commercial adoption.
Initially built for U.S. intelligence agencies after 9/11, Palantir’s software became known for tackling high-stakes problems. While government remains its largest customer, the company’s growth is now led by the commercial market.
AIP functions as an operating system for enterprise AI. By integrating disparate data into a structured model, it helps organizations make AI actionable across healthcare, insurance, logistics, and more.
Rapid Growth
Momentum has accelerated for eight consecutive quarters. In Q2, revenue rose 48% to $1 billion. U.S. commercial revenue jumped 93% to $306 million, while government sales climbed 53% to $426 million, bolstered by a 10-year, $10 billion Army deal.
Customer expansion remains strong—deal value in U.S. commercial more than doubled, and net dollar retention rose to around 118%.
Risks vs. Rewards
Valuation is the clear concern. Shares trade at nearly triple-digit forward price-to-sales and a P/E of 470-540, leaving little margin for error. International commercial revenue also slipped slightly last quarter, highlighting scaling challenges outside the U.S.
After a sharp pullback, Palantir is now testing key support levels. If the stock were to lose its 50-day moving average, some analysts warn it could retreat toward longer-term averages, signaling further downside risk. This underscores the importance of balancing enthusiasm for Palantir’s growth with an awareness of potential volatility.
Despite these risks, Palantir’s runway is substantial. AIP’s broad applicability and early-stage deployments suggest further growth potential. With new AI agents and untapped European markets ahead, the company could be a defining AI investment for the next decade.
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