Technology

Here's How Much a $1000 Purchase In PLTR Would be Worth Today

Jacob Wolinsky

Published: October 16, 2024 9:46 am

Nvidia Corp (NASDAQ: NVDA) has been at the front and center of all financial discussions on AI in 2024. 

But it’s not the only one that is winning as companies continue to invest aggressively in artificial intelligence. Another name that has made its shareholders a happy lot this year is Palantir Technologies Inc (NYSE: PLTR). 

Key Points:

• Palantir Technologies Inc has turned $1,000 into more than $4,000 in four years
• Greentech Research analyst expects PLTR to be a $100 stock within the next few years
• Palantir stock will likely remain resilient if the U.S. economy slows down moving forward
• Interested in exploring stock picks that could be the next ones to boom amidst the ongoing AI frenzy? Grab a free copy of our “The Next Nvidia” report today 

Shares of Palantir have rallied 300% since its debut on the New York Stock Exchange . To put that in context, if you had invested just $1,000 in PLTR IPO in September 2020, you would have more than $4,000 today.  Full disclosure: I have owned a small stake in Palantir stock for quite some time.

Following such a massive rally, however, it only makes sense for you to question if it’s already too late to invest in Palantir stock. 

Let’s explore.  

Palantir’s AI strategy is in its early innings

Palantir has been growing at an accelerated pace and analysts believe it will retain that momentum moving forward as its artificial intelligence platform (AIP) continues to work wonders for the defense sector. 

The data analytics company inked a $480 million agreement with the Pentagon in May followed by a $33 million contract with the Chief Digital and Artificial Intelligence Office (CDAO) and a $100 million deal with the Army Research Laboratory (ARL). 

But its AIP is arguably still in the early innings only considering artificial intelligence spending is estimated to hit $1 trillion within the next few years, as per the Goldman Sachs analysts. 

Palantir stock is worth owning at writing also because its forward price/earnings-to-growth multiple currently sits at 0.35 only. A stock with a PEG of less than 1 is typically seen as undervalued. 

AI mania could spark a massive rally in a few other stocks as well. Grab a free copy of our “The Next Nvidia” report to find out their names.

PLTR may be resilient to economic slowdown

Palantir has recently signed a national security contract with Microsoft and a five-year strategic agreement with BP. The NYSE-listed firm has meaningful partnerships with other big names like Google as well.  

As evident, the software giant primarily works with governments and large enterprises. That’s significant if you’re convinced the U.S. economy is headed for a recession. Why? Because governments and large enterprises tend to be more resilient amidst a challenging economic backdrop.   

Additionally, Palantir is committed to strengthening its footprint in the commercial sector as well. The data analytics firm expects U.S. commercial sales to jump another 47% this year to $672 million. 

Total commercial sales in the second quarter stood at $307 million, as per the earnings release PLTR posted in August. Palantir stock could, therefore, extend its gains as it continues to diversify its customer base in pursuit of future growth.   

Palantir stock could nearly triple moving forward

Palantir stock is all the more exciting to own at writing as it’s recently joined the S&P 500, which typically boosts institutional interest in a business. 

That’s why a number of Wall Street analysts are currently bullish on the Denver-headquartered firm. In fact, Hilary Kramer of Greentech Research dubbed it her absolute 100% favorite in a recent note and said PLTR could easily be a $100 stock within the next few years.

Earlier this month, Wedbush senior analyst Daniel Ives also raised his price target on Palantir shares to $45, indicating potential for a more than 20% upside over the next 12 months. 

Ives recommends buying Palantir Technologies on every dip for its enterprise-driven artificial intelligence strategy. “PLTR is in a prime spot to continue expanding its pipeline/deal flow while providing more use cases coming forward to address critical problems across industries,” he told clients on September 26th. 

Palantir is somewhat unique in its AI approach as it offers tailored solutions to customers, which translate to exceptional pricing power, as per the Wedbush analyst. 

In conclusion, while Palantir stock may not be the next 10x opportunity, it’s diversifying the customer base, and fully capitalizing on the AI frenzy to deliver profitable growth that makes it fairly positioned to continue to perform better than its peers in the software space.