On September 30, 2020, Palantir Technologies went public on NASDAQ. The company faced skepticism from institutional investors and analysts but gained popularity among retail investors, led by CEO Alex Karp. Since the AI revolution in late 2022, Palantir has emerged as a leader in the space, with the release of its Artificial Intelligence Platform (AIP) contributing to its growth.

Palantir’s AIP has fueled revenue growth, wider profit margins, and positive net income and cash flow. The company has joined the S&P 500 and is the best-performing stock in the index in 2024. Strategic partnerships with big tech companies like Microsoft, Oracle, Amazon, and Meta Platforms have further boosted Palantir’s growth potential in core markets through AIP.

Despite its success, Palantir’s soaring valuation, with a price-to-sales ratio of 66, poses a challenge. The company’s valuation expansion has been driven by impressive earnings reports and partnerships with big tech. While some hedge funds have been taking profits, Palantir’s future growth opportunities could outweigh the risks, making it a potential AI opportunity for long-term investors.

For investors considering Palantir, dollar-cost averaging into the stock at different price points over a long time horizon could be a prudent approach. The company’s partnerships with big tech and its exclusive positioning in the market make it a compelling investment opportunity, despite its high valuation. Consider including Palantir in your portfolio for potential long-term growth.

Read more at Nasdaq: 1 Unstoppable Artificial Intelligence (AI) Stock You’ll Want to Own Next Year