
Palantir Stock Soars 69% Year to Date: Time to Hold or Chase?
Palantir Technologies Inc. PLTR has surged 69% year to date, eclipsing the industry 's modest 13% average and outshining heavyweights like Nvidia NVDA and Oracle ORCL.
Nvidia, a leading force in AI and graphics processing technology, has recorded a 6% gain so far this year. Similarly, Oracle, renowned for its enterprise software and cloud infrastructure services, has gained 5% year to date.
In a macroeconomic landscape that has left many tech giants limping, Palantir's relentless rally stands out, but does this pace leave any meaningful upside for new investors?
While Nvidia continues wrestling with cyclical demand and Oracle faces pressure on its cloud transition pace, Palantir is thriving by doubling down on artificial intelligence and data-centric enterprise software. The key question now: Is this AI darling still a buy, or has the market already priced in perfection?
Explosive AIP Adoption Fuels PLTR's Growth
The backbone of Palantir's recent success is its Artificial Intelligence Platform (AIP), which is rapidly transforming into the company's biggest commercial catalyst. U.S. commercial revenues skyrocketed 71% year over year and 19% sequentially in the first quarter of 2025, pushing the annual run rate past the $1 billion mark for the first time.
Total contract value in this segment skyrocketed 239% YoY, with deal sizes proliferating, more than double the number of $1 million contracts closed compared to last year. The rising popularity of AIP bootcamps — short, targeted training sessions for enterprise AI deployment — is a major driver. These bootcamps reduce implementation timelines and showcase AIP's plug-and-play value, helping customers scale AI operations faster than ever.
Palantir's flexible, modular sales model allows clients to start small with specific components, further lowering adoption friction. Combined with usage-based pricing, this strategy has broadened Palantir's reach in the U.S. commercial sector, making AI integration more accessible and scalable for new clients.
PLTR's Balance Sheet Strength Bolsters Confidence
As of March 31, 2025, Palantir boasted $5.4 billion in cash and no debt. This fortress balance sheet gives the company strategic flexibility to reinvest in growth without external financing pressures.
Revenue growth remains robust—first quarter sales soared 39.3% YoY. Deal momentum is equally encouraging with Palantir closing 139 deals of at least $1 million, 51 deals of at least $5 million and 31 deals of at least $10 million in the quarter.
PLTR's Earnings Momentum Remains Strong
The Zacks Consensus Estimate for second-quarter 2025 EPS stands at 14 cents, up 55.6% from a year ago. Full-year earnings are projected to grow 44% in 2025 and 25% in 2026.
Sales estimates are equally bullish, with 38% expected growth in the second quarter and full-year top-line increases of 37% and 28% for 2025 and 2026, respectively.
Valuation: Palantir's Biggest Headwind
Despite its strong fundamentals, PLTR's valuation is hard to ignore. Its forward P/E ratio of 197 dwarfs the industry average of 40. This lofty premium reflects high expectations around future AI monetization and government contracts. While the growth story is compelling, the stock is priced for near-flawless execution, leaving minimal margin for error.
Such a valuation exposes the stock to heightened volatility, especially if earnings or guidance falter in any quarter. Investors must weigh long-term promise against short-term risk.
Verdict: Hold Your Ground, Don't Overextend
Palantir is proving itself as a real contender in AI-powered enterprise solutions. It has the momentum, the product-market fit, and the financial strength to keep growing. But the current price likely already reflects much of this optimism.
While long-term investors should hold onto their positions, chasing the stock at these levels could prove risky. A better entry point may emerge after a pullback and valuation reset.
PLTR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
Palantir Technologies Inc. (PLTR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CTV News
an hour ago
- CTV News
Government watchdog gives Manitoba minister title of ‘worst finance minister in the country': report
Manitoba Finance Minister Adrien Sala has received an overall F grade from the Canadian Taxpayers Federation on provincial spending, debt, debt interest and tax relief. (THE CANADIAN PRESS/John Woods) The Canadian Taxpayers Federation (CTF) has given Manitoba's finance minister the title of 'worst finance minister in the country,' according to a report on provincial government spending. The organization that is 'dedicated to lower taxes, less waste and accountable government' released its 2025 Finance Minister Report Card—ranking ministers based on provincial spending, debt, debt interest, and tax relief. The report compared provincial budgets from last year to this year and took into consideration other provincial fiscal announcements. Manitoba Finance Minister Adrien Sala received the lowest grade according to the report, an overall F, which he shares with Newfoundland and Labrador's Finance Minister Siobhan Coady. The report indicates that Coady also received the title of 'worst finance minister in the country.' Lowest grade for tax relief among provinces: report 'Unfortunately, Manitoba is not performing well financially compared to other finance ministers in the country,' said Gage Haubrich, CTF prairie director. 'Manitoba was one of the only provinces this year to actually hike taxes in its provincial budget, and it did in a sneaky, underhanded way, known as bracket creep,' he said. Haubrich said that Manitoba's government has stopped linking income tax brackets to inflation, which will cost Manitoba taxpayers $82 million this year, per the report. Manitoba received the lowest grade for tax relief among the provinces. 'So that means just by getting a cost-of-living raise, not actually making any more money, you can get bumped up into a higher tax bracket, and that increases your taxes,' said Haubrich. Gage Haubrich Canadian Taxpayers Federation prairie director Gage Haubrich said that the provincial government's decision to stop linking income tax brackets to inflation is 'a very sneaky tax hike.' (Zoom) He said the longer bracket creep sticks around, the more money taxpayers are going to pay from compounding inflation. 'It's a very sneaky tax hike,' Haubrich said. He added the last time Manitoba got rid of bracket creep was in 2017. The report says that the government 'introduced a small cut to the province's payroll tax and an increase to the homeowner's affordability tax credit' but adds that the cuts save taxpayers less than what the bracket creep will cost them. F grade for debt interest payments: report Manitoba also received an F grade for debt interest payments, along with Quebec and Newfoundland and Labrador. The report says that the Manitoba debt interest payment will be $2.3 billion this year, working out to be $1,554 per person, only behind Newfoundland and Labrador at $2,088 per person. The province also received a D grade for a spending increase, listed at approximately 7.1 per cent, and the same grade for debt, which is planned to increase to $1 billion compared to last year's budget, per the report. 'Manitoba is on solid financial footing,' says Sala In an emailed statement from Sala, he said, 'Our plan was recently given an A+ by S&P Global Ratings, which means independent experts believe Manitoba is managing its finances responsibly.' 'This lowers borrowing costs and creates more stability for Manitobans in uncertain times, with a greater capacity to invest in the things that matter, like health care, affordability and public safety.' Sala added that 'Manitoba is on solid financial footing.' The report says that Saskatchewan's finance minister is 'performing the best,' with an overall B+ grade. 'No finance minister in the country earned an A grade for their budget, because all finance ministers are continuing or planning to rack up debt and waste millions of taxpayer dollars on debt interest payments,' says the report.


CTV News
an hour ago
- CTV News
City, transit union reach tentative agreement
The city and ETS workers reached a tentative agreement on Monday following months of negotiations. ETS workers are represented by the Amalgamated Transit Union (ATU) Local 569. The ATU will hold a ratification vote with its members in the coming days. The City of Edmonton did not provide further details as the process is still ongoing. 'Both parties are pleased to have reached a tentative agreement that balances the needs of Edmonton transit workers while considering the sustainability of city finances,' said a statement issued by the city Tuesday. The city and the ATU began negotiations on Aug. 14, 2024, and have met for 17 bargaining and mediation sessions since then. The last contract ended on Dec. 30, 2023. The tentative agreement, which needs to be ratified by both parties before coming into effect, will cover a four-year term from Dec. 31, 2023 to Dec. 11, 2027.


Globe and Mail
2 hours ago
- Globe and Mail
Brookfield Business Corporation Announces Results of Annual Meeting of Shareholders
BROOKFIELD, NEWS, June 10, 2025 (GLOBE NEWSWIRE) -- Brookfield Business Corporation (the 'Corporation') (NYSE, TSX: BBUC) today announced that all ten nominees proposed for election to the board of directors of the Corporation by holders of class A exchangeable subordinate voting shares ('Exchangeable Shares') and holders of class B multiple voting shares ('Class B Shares') were elected at the Corporation's annual general meeting of shareholders held on June 10, 2025 in a virtual meeting format. Detailed results of the vote for the election of directors are set out below. In accordance with the Corporation's articles, each Exchangeable Share was entitled to one vote per share, representing a 25% voting interest in the Corporation in the aggregate, and the Class B Shares were entitled to a total of 215,082,201 votes in the aggregate, representing a 75% voting interest in the Corporation. The following is a summary of the votes cast by holders of Exchangeable Shares and Class B Shares, voting together as a single class, in regard to the election of the ten directors: Director Nominee Votes For % Votes Withheld % Cyrus Madon 279,593,990 99.90 268,437 0.10 Jeffrey Blidner 277,344,556 99.10 2,517,871 0.90 David Court 279,649,745 99.92 212,682 0.08 Stephen Girsky 279,463,948 99.86 398,479 0.14 David Hamill 279,646,581 99.92 215,846 0.08 Anne Ruth Herkes 279,648,255 99.92 214,172 0.08 John Lacey 272,069,850 97.22 7,792,577 2.78 Don Mackenzie 279,782,671 99.97 79,756 0.03 Michael Warren 279,782,332 99.97 80,095 0.03 Patricia Zuccotti 279,751,664 99.96 110,763 0.04 A summary of all votes cast by holders of the Exchangeable Shares and Class B Shares represented at the Corporation's annual meeting of shareholders is available on SEDAR+ at Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility to invest in our company either through Brookfield Business Partners L.P. (NYSE: BBU; TSX: a limited partnership, or Brookfield Business Corporation (NYSE, TSX: BBUC). For more information, please visit Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management's Private Equity Group. Brookfield Asset Management is a leading global alternative asset manager with over $1 trillion of assets under management. For more information, please contact: