Palantir Technologies (NASDAQ: PLTR) stock surged by 149% in 2025, but analysts believe its growth may slow. The stock trades at high multiples, but its ability to attract new customers and maintain profitability justifies its premium valuation. With a Rule of 40 score of 114%, Palantir’s growth potential remains strong.

The company reported a 63% revenue increase in Q3 and secured $2.8 billion in new contracts. Palantir’s growth outpaces the AI software market, positioning it to capture a significant share of the estimated $400 billion global market by 2030. Its strong earnings and projected growth make it a compelling investment.

Despite its high valuation, Palantir’s stock may continue to rise in 2026. With a 110% increase in earnings in Q3 and a forecasted 40% earnings growth in the new year, the company’s performance remains robust. Investors looking for growth opportunities can consider adding Palantir to their portfolios.

Investors interested in Palantir should note that while the company has strong growth potential, there are other top stock options to explore. The Motley Fool’s Stock Advisor offers insights into the 10 best stocks for investment opportunities. With a history of market-beating returns, exploring diverse stock options could lead to significant growth in the future.

Read more at Yahoo Finance: Is Palantir Technologies Stock a Buy?