Palantir Technologies (NASDAQ: PLTR) has seen a remarkable 550% increase in its stock over the past 12 months, outperforming the S&P 500 by more than 30 times. The rise can be attributed to the AI boom in the stock market and business world.

In its recent second-quarter earnings report, Palantir reported a 4.5% jump in after-hours trading. The company’s U.S. commercial revenue grew 93% year over year to $306 million, while its U.S. government revenue grew 53% year over year to $426 million, leading to its first-ever $1 billion quarter.

Palantir, known for its software that helps analyze complex data sets, has been making significant strides in its commercial business with the introduction of its Artificial Intelligence Platform (AIP). The company has been closing large-value deals, with $1 million+ deals doubling in its U.S. commercial segment.

Despite its success, Palantir’s stock valuation is trading at a staggering 287 times its forward earnings, raising concerns about its high valuation. Investors are advised to proceed with caution as historically, even high-valued companies have experienced sharp pullbacks.

Palantir’s adjusted operating income in Q2 was $464 million, showing significant growth from the previous year. The company has been able to expand its margins while investing in its operations. However, the stock’s high valuation poses a risk of not meeting expectations in the future.

Read more at Yahoo Finance: The Biggest Takeaways From Palantir’s Aug. 4 Earnings Report