Analyst Explains Why the Valuation of Palantir Technologies (PLTR) Stock Is So High

From Yahoo Finance: 2025-05-10 12:59:00

Palantir Technologies (PLTR) has a high price-to-earnings ratio due to the big opportunity in the AI market and successful execution, according to analyst Jordan Berger. The stock’s forward P/E ratio is about 230 times. Palantir has outperformed its peers and executed well in Q1, leading to recent stock gains of 37% in a month, 2.5% in three months, and 41% in 2025.

However, while Palantir shows promise, there are other AI stocks with potential for higher returns in a shorter timeframe. Some AI stocks have increased significantly in 2025, while popular ones have declined. For those looking for a more promising AI stock trading at less than 5 times its earnings, an article recommends checking out the cheapest AI stock.



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