From Nasdaq: 2025-06-06 17:39:00

Palantir Technologies (NASDAQ: PLTR) has seen a massive stock growth, up nearly 2,000% since the start of 2023. This is attributed to the success of its Artificial Intelligence Platform (AIP) that overlays AI on its software analytics platforms. However, with a price-to-sales ratio of 105, concerns arise about its ability to sustain this growth, especially as its market cap exceeds $300 billion. Despite this, Wedbush analyst Dan Ives predicts Palantir could reach a valuation of $1 trillion in the next two to three years, driven by its leading position in AI and government partnerships.

With revenue growth of 39% in the latest quarter, Palantir is on track for significant expansion. However, its high valuation presents challenges, making it unlikely to reach $1 trillion. The company’s strong growth, federal government support, and AI demand bode well for its future, but its valuation makes it a risky investment. The Motley Fool Stock Advisor team does not include Palantir in their top 10 stock picks, citing potential for other stocks to produce higher returns.



Read more at Nasdaq: 1 Wall Street Analyst Thinks Palantir Will Be a Trillion-Dollar Company. Can It Get There?