Palantir Technologies: A Truly Remarkable Stock Surge in 2023

Palantir Technologies (NASDAQ: PLTR) has taken Wall Street by storm. Currently, shares are up 51% for the year and have skyrocketed over 380% in the last 12 months.

What does the future hold for Palantir’s stock? Let’s explore the potential ahead.

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Market Capitalization Surges to $260 Billion

Palantir’s stock has experienced a remarkable ascent.

Just a year ago, I noted that “Palantir is a great company and a solid investment, [but] I don’t think it has what it takes to cross the very high hurdle of $1 trillion by 2035.”

At that time, its market cap was around $58 billion, but it’s now surpassed $260 billion — a staggering increase of over four times in less than a year.

If this growth continues, Palantir could potentially reach the $1 trillion mark in just about a year.

This may sound overly ambitious, even for devoted supporters of the company. Yet, the stock’s rapid rise can be attributed to the company’s significant advancements.

Let’s take a closer look.

Could Palantir Become the “Windows” of AI?

Reflect back to the 1980s, when personal computers were the groundbreaking technology. While the innovation was undeniable, the critical question was: Which operating system would dominate the personal computer market?

Apple offered the Macintosh with its own operating system, and several companies put forth their systems with unique features.

Ultimately, Microsoft emerged as the frontrunner with its Windows operating system.

What can we learn from this history?

Artificial intelligence today resembles personal computers back then. The big question is, which company will create the best software to harness AI technology effectively?

There will undoubtedly be numerous winners. While Microsoft led the initial phase of personal computing, companies like Apple later thrived and significantly boosted shareholder value.

I believe Palantir has the potential to be one of the first major AI software companies in a rapidly expanding field. AI, alongside robotics, is set to revolutionize organizational operations, enhancing logistics, customer service, and even personnel management.

Hence, anticipate further impressive earnings reports like the one recently shared by Palantir.

For the quarter ending December 31, 2024, Palantir reported:

• A 43% year-over-year growth in overall customer base.
• 36% revenue growth compared to the previous year, including 52% growth in the U.S. overall and 64% in the U.S. commercial sector.
• 63% adjusted free cash flow margin.

In summary, the company’s financial metrics are progressively improving, which is what one would expect from a leader in a pioneering industry. Investors should seize this opportunity. Although Palantir has shown remarkable growth to date, this momentum could continue for years.

Seize This Potential Opportunity

Have you ever felt you missed the chance to invest in breakout stocks? Now may be your moment.

Occasionally, our expert analysts issue a “Double Down” stock recommendation for companies they anticipate will excel shortly. If you’re worried you’ve already lost your chance to invest, this could be the opportune moment to act.

Here are some notable past returns:

• Nvidia: if you had invested $1,000 during our double down in 2009, it would now be worth $336,677!*
• Apple: a $1,000 investment made during our 2008 double down would now stand at $43,109!*
• Netflix: investing $1,000 at our 2004 double down would yield $546,804!*

Currently, we’re issuing “Double Down” alerts for three exceptional companies, and this may be a rare opportunity.

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*Stock Advisor returns as of February 3, 2025

Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.