Here's What a $1,000 Investment in Palantir Stock Could Be Worth in 5 Years (Hint: It's a Lot)
Despite its high valuation, Palantir still has plenty of upside potential.
Overview
Palantir Technologies (NASDAQ: PLTR) is one of the most exciting growth stories in artificial intelligence (AI). And despite what looks like a hefty valuation, the stock could have considerable upside over the next five years.
The company has become one of the premier software-as-a-service (SaaS) companies when it comes to AI. The combination of its Foundry solution with its Artificial Intelligence Platform (AIP) layered on top has turned it into an important AI orchestration layer that is akin to an AI operating system. Palantir's Foundry solution comes from the company's roots as a data gathering and analytics company; it collects data from a wide variety of sources and puts it all into an ontology that connects to an organization's assets and operational workflows. AIP then acts as an important execution layer for third-party AI models with strict guardrails and audit trails. In essence, it helps make AI more useful in the real world by significantly reducing the possibility of costly AI hallucinations.
Details
The success of AIP can be seen in Palantir's numbers. The company's revenue growth has accelerated every quarter for three straight years, led by its strength with U.S. commercial customers. Last quarter, its overall revenue climbed by 93% to $1.94 billion, while its U.S. commercial revenue surged 149% to $764 million. Meanwhile, its U.S. commercial remaining deal value climbed 124% to $6.24 billion. The U.S. government remains Palantir's largest customer, and that business segment's growth has also been rapidly increasing, climbing 90% year over year in Q2 to $809 million.
Source
Originally published at www.fool.com.
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