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Up 300% in 2024, Where Will Palantir Go From Here?

Vandita Jadeja

Published: January 21, 2025 9:12 am

With the earnings season in full swing, it is hard to ignore the top Artificial Intelligence stocks. Besides the hot stock Nvidia Corp. (NASDAQ: NVDA), AI company Palantir Technologies Inc. (NYSE: PLTR) has been making big news and solid moves. The stock soared over 300% in 2024 but has had a rough start to 2025. Down 4% year-to-date, Palantir stock is exchanging hands for $71 today, lower than the all-time high of $84. So, what does Palantir’s future look like? Let’s dive deep into the big data company. 

Key Points in this article

• Palantir stock was up over 300% in 2024.
• The AI giant has strong fundamentals and is profitable today.
• Its products are a huge hit across multiple industries.
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The strong upside in the stock price has led to a positive outlook for Palantir. It was once a government favorite and was criticized for only catering to government companies. However, it is a diversified business today with a steady year-over-year growth in commercial clients. The outlook for 2025 is strong and the company is expected to hit over 20% growth. There are multiple reasons to believe that its upside won’t stop. 

Strong fundamentals 

In the third quarter, Palantir surpassed Wall Street expectations and reported a revenue of $726 million and earnings per share of 10 cents. It saw a 30% year-over-year jump in revenue and the net income came in at $143.5 million, up from $71.5 million in the previous quarter. With companies investing in and adopting AI, Palantir has a bright future ahead and the management has bumped the revenue range. It now expects a revenue of $2.805 billion for the year. 

Palantir’s Artificial Intelligence Platform (AIP) has been a steady growth driver for the business and has found adoption across multiple industries. It saw a 54% jump in the commercial revenue in the quarter and while it might not be the largest business segment, it continues to be one of the fastest-growing segments. Palantir enjoys business stability due to its contracts with the government. While this will continue to generate revenue in the years to come, the expansion in the commercial segment will drive higher growth. With only 321 commercial clients, Palantir has ample space to expand. 

While its revenue growth is only 30% YOY, it is one of the few profitable AI companies and has been for some time. This is the reason the stock is trading at a premium and investors are paying for it. AI has started to play a huge role across multiple industries and there will hardly be any industry that does not use technology and AI. This throws light on how big Palantir could be in the next decade. 

Massive expansion potential

The company is in talks with Shield AI, to enter the massive drone industry. The AI drone startup is valued at $5 billion and has several other investors keen on investing in the company. With a growing defense budget, this investment could help Palantir maintain its stronghold in the defense industry. 

AIP is ideal for all industries and businesses, which could be a solid reason for its growing popularity. After years of lagging and trading in the range of mid-20s, Palantir is enjoying tremendous success today. I have always loved the company and believe in its solid products. Analysts have increased coverage and the company saw several price target increases in 2024. The strong sentiment could continue throughout the year. Recently, State Street Corporation increased its investment in the company by 96.4% and holds shares worth $3 billion. Geode Capital Management also increased its stake and holds shares worth $1.78 billion. 

Many believe that the company will benefit as the Trump administration is prioritizing national security and immigration enforcement. The government being one of the largest clients, Palantir is here to stay and has a long way to go. The company is set to report results on February 3. 

The future is AI

PLTR is one of the top stocks to benefit from the adoption of AI. It is a solid growth stock to buy and hold for the next five years. The stock is a buy as it retreats from the all-time high of $84. We could see the stock hit $100 in 2025. Do not consider Palantir a meme stock, it is a strong, profitable company with immense potential to grow in the coming years.