Palantir Technologies (NASDAQ: PLTR) has seen explosive growth in recent years, thanks to its Artificial Intelligence Platform (AIP). The company’s earnings have soared, with its stock price climbing 1,900% in the past three years. Palantir’s commercial sales are skyrocketing, driving revenue higher, with 485 U.S. commercial customers and a record $843 million in contract value. The company’s Rule of 40, which balances growth and profitability, has been impressive, exceeding 40% consistently. However, Palantir’s steep valuation, trading at 241x forward earnings estimates, may be a reason for caution.

Investors are debating whether to invest in Palantir now or if it’s too late. Commercial sales growth and strong Rule of 40 performance are reasons to consider buying, but the high valuation could limit further gains. Long-term investors may still see significant returns, despite the current high price. Palantir Technologies was not included in the Motley Fool Stock Advisor team’s 10 best stocks to buy now, highlighting the need for careful consideration before investing in the company.

Read more at Nasdaq: 2 Reasons to Buy Palantir, and 1 Reason to Sell