Palantir (PLTR) stock has surged by 136% in 2025, closing at $177.29 on Dec. 17 from $75.19 on Jan. 2. The company’s market cap is now over $400 billion, making it the 19th largest publicly traded corporation in the S&P 500.

Palantir’s success is attributed to its 63% year-over-year revenue growth, with a 40% margin of $476 million in net income. The AI software giant closed hundreds of seven-figure deals, including 53 deals over $10 million in the third quarter.

Despite Palantir’s high valuation, with a trailing P/E ratio of 408.76, AI investors may find the stock appealing for its potential high returns over time. Value investors may be skeptical, but long-term investors with a tolerance for risk could benefit from Palantir’s growth potential in the AI sector.

Read more at Yahoo Finance.: If You Invested $1K in Palantir at the Beginning of 2025, Here’s How Much You’d Have Now