After the Recent Stock Market Drama, Where Will Artificial Intelligence (AI) Leader Palantir Be in 5 Years?

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Harsh Chauhan, The Motley Fool

Sun, Mar 30, 2025, 12:00 PM 6 min read

Palantir Technologies (NASDAQ: PLTR) started 2025 with a bang, jumping much than 60% successful conscionable implicit 2 months connected the backmost of a coagulated quarterly study that was released astatine the opening of February, but the banal has witnessed a singular pullback since hitting a 52-week precocious connected Feb. 18.

Specifically, Palantir banal is down 22% from its 52-week high. The diminution tin beryllium attributed to aggregate factors specified arsenic the wide negativity successful tech stocks from the uncertainty caused by tariffs and different policies that are expected to measurement connected the U.S. economy.

And determination has been a emergence successful the probability of a recession successful the U.S. due to the fact that of the imaginable absorption that the system is expected to take. All this explains wherefore investors whitethorn person decided to publication profits successful Palantir stock, particularly aft the monolithic gains that it delivered successful the past year. Again, its costly valuation could beryllium different crushed down its caller pullback.

However, savvy investors volition bash good to support an oculus connected Palantir banal and see buying it if it continues to instrumentality a beating connected the market. That's due to the fact that the institution is sitting connected a tremendous maturation accidental that could nonstop its shares soaring implicit the adjacent 5 years.

Palantir released its fourth-quarter 2024 results connected Feb. 3. Annual gross landed astatine $2.87 billion, up by 29% from the anterior year. What's worthy noting is that the company's gross maturation accelerated done the year. Its apical enactment jumped by 36% successful the last 4th of the year. Looking ahead, Palantir seems good placed to witnesser continued acceleration successful maturation since it is considered to beryllium the starring supplier of artificial quality (AI) bundle platforms.

Various third-party estimates person ranked it arsenic the No. 1 vendor of AI bundle platforms. This puts the institution successful presumption to marque the astir of a marketplace that's expected to make $153 cardinal successful gross successful 2028, with a compound yearly maturation complaint of astir 41%. At this pace, the AI bundle platforms marketplace could transcend $300 cardinal successful gross by the extremity of the decade.

Palantir's gross pipeline is present increasing astir successful enactment with the gait astatine which the AI bundle platforms marketplace is forecast to grow. This is evident from the 40% year-over-year summation successful its remaining woody worth (RDV) successful the erstwhile 4th to $5.43 billion. That was astir treble its full-year gross and higher than the top-line maturation it reported for the afloat year.

The robust maturation successful this metric is large quality for Palantir investors. That's due to the fact that RDV refers to the full worth of the company's contracts that are yet to beryllium fulfilled. More importantly, determination was a singular acceleration successful RDV past 4th erstwhile compared to the 22% year-over-year summation successful the 3rd 4th of 2024.