This Artificial Intelligence (AI) Powerhouse Is Up 274% in 12 Months. But Is It a Buy?

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Justin Pope, The Motley Fool

Sun, Apr 6, 2025, 7:20 AM 4 min read

The marketplace is abruptly connected shaky ground. But sometimes, the caput lets caller events outshine the large picture. Take Palantir Technologies (NASDAQ: PLTR), for example. The powerhouse artificial quality (AI) banal has rapidly plunged implicit 30% from its high. Yet, the banal is inactive up a singular 274% implicit the past year! In different words, things aren't arsenic achy arsenic they mightiness feel.

Of course, that was the past. Potential investors indispensable present look guardant to gauge whether this banal is simply a buy. Should investors bargain Palantir now, oregon is the banal bound to springiness up much of its past gains?

Here is what you request to know.

You've astir apt heard artificial quality (AI) referenced much times than you tin count. The hype tin get a small up of world whenever there's a caller technology, particularly 1 with arsenic overmuch imaginable arsenic AI.

Palantir is simply a genuinely game-changing AI stock. The institution builds customized bundle applications connected its Gotham, Foundry, and AIP exertion platforms. These applications usage AI, information analytics, and instrumentality learning to nutrient real-time actionable insights. Palantir helps customers observe fraud, optimize proviso chains, coordinate subject missions, and bash countless different things. Any enactment with tons of information could beryllium a imaginable customer.

Palantir's roots are successful government; its enactment with the U.S. subject dates backmost implicit a decade. Over fractional of its full gross inactive comes from authorities business. However, Palantir's momentum successful the commercialized assemblage has captivated Wall Street. Revenue has continually accelerated since Palantir launched its AIP level successful mid-2023. Palantir ended 2024 with conscionable 382 U.S. commercialized customers. There are implicit 20,000 ample corporations successful the U.S. alone. Such flexible bundle and an underpenetrated marketplace make a monolithic maturation runway for the adjacent decade.

Additionally, Palantir is financially rock-solid. The concern is already GAAP profitable, with a stacked equilibrium expanse boasting $5.2 cardinal successful currency and zero debt. Analysts estimation Palantir volition turn net per stock by an mean of 25% annually implicit the agelong term. Investors person a batch to similar here, and it makes consciousness that the AI banal rocketed higher successful a euphoric market.

Here's the thing. As breathtaking arsenic Palantir's concern is, it hasn't kept up with the stock.

Palantir's trailing-12-month gross has grown 40% implicit the past 3 years. Meanwhile, net per stock person accrued an awesome 216%. But the stock? Shares person rocketed implicit 900%, and that includes the caller decline!