Palantir Technologies continues its meteoric rise, closing Friday with a more than 2% gain that propelled the company’s stock to yet another record high. The surge pushed Palantir’s market capitalization to $375 billion, officially making it one of the 20 most valuable publicly traded companies in the U.S.—surpassing legacy giants like Home Depot, Procter & Gamble, Bank of America, and Coca-Cola.
Founded in 2003 by Peter Thiel, Alex Karp, and others, Palantir has steadily grown its footprint in data analytics and software, particularly within the defense and intelligence sectors. In 2024, however, it’s been the company’s accelerating AI adoption and deepening ties to the U.S. government that have transformed it into a Wall Street favorite.
AI-Fueled Growth Sends Palantir Soaring
Palantir’s stock has more than doubled year-to-date, driven by optimism around its AI platforms and strategic contracts with government agencies. The company’s software is increasingly seen as critical infrastructure for both national security and enterprise clients, reinforcing its long-term value.
In its most recent quarter, revenue from U.S. government clients surged 45% to $373 million, contributing to total revenue of $884 million—a 39% year-over-year increase. This explosive growth has drawn heightened investor attention ahead of its next earnings report on August 4.
Premium Valuation Reflects Market Confidence
Palantir’s momentum has vaulted it ahead of tech stalwarts like Salesforce, IBM, and Cisco in terms of market cap, now ranking among the top 10 U.S. tech companies. Yet this rise comes with a steep price tag. Shares currently trade at 273 times forward earnings, the highest among top 20 U.S. firms. Tesla is the only other to trade at a triple-digit multiple, at 175.
Despite having just $3.1 billion in trailing 12-month revenue—compared to Mastercard’s $29 billion—Palantir’s valuation suggests investors are pricing in aggressive future growth from AI and national security verticals.
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Valuation Sky-High, But So Is Optimism
Palantir’s ascent to a top-20 U.S. company underscores its growing strategic importance in the AI and defense landscape. While its valuation is rich by any measure, the market is betting big on the long-term upside of its AI capabilities and entrenched government relationships.
