Jim Cramer Loves Palantir

Jim Cramer loves controversial tech stock Palantir (NASDAQ: PLTR | PLTR Price Prediction). Founded by “home run” hitting investor Peter Thiel the stock is up over 100% this year. Cramer called Palantir “the most controversial stock in the market.” He then forecast a breakout quarter. Palantir reports its numbers early next week.

Patatif just snagged a $10 billion order from the U.S. Army. The Army took a number of its software projects and bundled them into the equivalent of one project. The deal is unusual. It allows the Army flexibility in how it uses Palantir services and eliminates some fees that often go into large contracts similar to this one.

For a long period of time, Palantir’s stock was considered a “dog.” It traded close to flat from October 2020 until and began to take off early in 2024. The jump is largely due to two reasons. Palantir started to post extraordinary earnings. And, it became one of Wall St.’s favorite AI stocks. In the first quarter of 2025, its revenue rose 39%. Its close relationships with the U.S. government continued to bear fruit.

Palantir has military and battlefield software which is considered “ state of the art.” An early investor was the CIA. This is seen as one of the reasons the company is so close to the government which has probably helped it when it pitches software deals to the American military. Palantir’s Gotham platform gets extraordinary grades from the Defense Department.

Palatir has also improved the one thing that may have held back its stock price. It has expanded its customer base well beyond the military. Its AIP platform helps its clients to integrate AI into a number of tasks across large companies.

Aside from the first quarter jump in revenue to $884 million, net income rose to $214 million, higher by 24%. Investors were particularly impressed that its non-military commercial revenue jumped 71% to $255 million. Its reliance on the military is falling.

Palati’s guidance may be one reason for Cramer’s optimism. The company increased guidance for the current quarter and the rest of the year. CEO Alexander Karp said investors should adopt a broader set of evaluations when they look at Palatir. He wrote in the most recent investor letter, “Our financial performance, that crude yardstick by which the market attempts to measure worth in this world, continues to exceed many of our greatest expectations.” It was an usual comment given that investors use financial figures as their primary view of most companies

There are several reasons Cramer describes Palantir as controversial. One is that the military is its largest customer. The other is that Thiel is a famous and visible conservative. If Cramer is right about next week’s “blowout” quarterly announcement, investors may not care about those things.