Palantir Technologies Inc. (PLTR) has seen a 90% increase in the past six months, surpassing industry and market growth. The key question for investors now is whether PLTR remains a good buy or if waiting for a pullback is wiser.

Palantir’s Artificial Intelligence Platform (AIP) has become its primary growth driver, with U.S. commercial revenues soaring 93% year over year. AIP’s success has led to a 222% increase in total U.S. commercial contract value and a 145% rise in remaining deal value, demonstrating the platform’s rapid scalability and customer satisfaction.

Tech giants like Microsoft, Google, and Salesforce are also ramping up their AI initiatives, but Palantir’s focus on mission-critical sectors like defense and healthcare sets it apart. While competitors excel in customer-facing tools, Palantir offers operational AI that drives high-stakes decision-making, giving it a unique edge in the market.

Palantir boasts a strong financial foundation with $6 billion in cash and no debt as of June 30, 2025. Second-quarter sales surged 48% year over year, marking a significant milestone for the company and showcasing rising enterprise demand and platform penetration.

Despite its strong performance, Palantir’s valuation remains a concern with a forward P/E ratio of 214, significantly higher than the industry average. This high valuation leaves little room for error, emphasizing the importance of caution and patience for potential investors.

Long-term investors should hold their positions in Palantir, given its strong product offerings and financials. However, new investors may want to wait for a more favorable entry point, especially if there is a pullback or valuation adjustment in the near future. Palantir currently carries a Zacks Rank #3 (Hold), indicating a neutral stance from analysts.

Read more at Nasdaq: PLTR Stock Rises 90% in Six Months: Still a Buy, or Time to Wait?