Palantir Technologies (NASDAQ: PLTR) has emerged as a major winner in the artificial intelligence space, with its stock price increasing by 333% over the past year. The company’s Artificial Intelligence Platform (AIP) has been a key driver of growth, putting the power of AI at customers’ fingertips.
Despite its impressive performance, Palantir’s stock has raised concerns among investors due to its high valuation, with some analysts warning that it may not be sustainable. The recent announcement by the Trump administration to cut defense spending by 8% annually has also sparked fears about the impact on Palantir’s business.
However, a closer look at Palantir’s U.S. commercial segment, which includes AIP, reveals promising signs of growth. In under two years, this segment has become a crucial engine for the company’s success, with customers flocking to its AI Bootcamp sessions. The segment’s 64% year-over-year revenue surge in the fourth quarter is particularly noteworthy.
While investors should keep a close eye on the revenue growth rate in Palantir’s U.S. commercial segment, it’s worth noting that the company’s stock has been relatively resilient despite concerns about its valuation and industry trends. As such, it may be worth considering for those looking to invest in the AI space.
For context, investors who missed out on Palantir’s initial surge can still benefit from investing now. Historically, stocks like Nvidia, Apple, and Netflix have delivered impressive returns when recommended by The Motley Fool’s expert team of analysts through their “Double Down” stock recommendations.
Source: https://www.nasdaq.com/articles/every-palantir-investor-should-keep-eye-number-0