Palantir stock soars 4% to all-time high after 400% yearly surge — is the ‘Messi of AI' now unstoppable on its golden path?

Economic Times

9 hours ago

Palantir stock hits a new record high after a 400% year-on-year surge, rising nearly 4% in a day. Dubbed the "Messi of AI," Palantir's golden path has investors and analysts buzzing with confidence as the company cements itself as a top AI stock to watch in 2025 and beyond.
Palantir stock is once again in the spotlight. On Monday, shares of Palantir Technologies (NYSE: PLTR) jumped to an all-time intraday high of $147.38, breaking past its previous record closing price of $144.25 from June 26. After falling for two straight days, the stock bounced back strongly, ending the day near $146.98, up more than 90% year-to-date.
The company's massive rally is fueled by growing demand for artificial intelligence tools, especially its Artificial Intelligence Platform (AIP), which is being adopted quickly by both governments and private companies.
The biggest reason for the rise in Palantir stock is the company's position in the fast-growing AI space. Over the past year, Palantir has shifted from just being a government software contractor to becoming a major AI software provider. Here are the key developments that pushed the stock higher: AI Platform Growth : Palantir's AIP is gaining fast traction, with many U.S. and international companies testing and adopting the platform. These bootcamps are short training events where companies can start using Palantir's software in just a few days.
: Palantir's AIP is gaining fast traction, with many U.S. and international companies testing and adopting the platform. These bootcamps are short training events where companies can start using Palantir's software in just a few days. Strong Government Contracts : The company continues to win large deals with U.S. defense and intelligence agencies. It's involved in new federal AI projects, including the U.S. Navy's tech upgrade program and Project Stargate , an AI-focused national security plan.
: The company continues to win large deals with U.S. defense and intelligence agencies. It's involved in new federal AI projects, including the and , an AI-focused national security plan. Inclusion in S&P 500 : Palantir was recently added to the S&P 500 index , which forced many index funds to buy shares. This drove more demand from both U.S. and global investors.
: Palantir was recently added to the , which forced many index funds to buy shares. This drove more demand from both U.S. and global investors. Analyst Confidence: Wedbush analyst Dan Ives called Palantir "one of the best AI plays in the world." He raised his price target to $160 and said the stock could eventually be worth $1 trillion. Palantir went public in 2020 at around $9.50 per share. It had a bumpy ride in its first few years, especially during the tech sell-off in 2022 when the stock fell to about $7.50. But things started turning around in 2023 as Palantir began to focus more on commercial AI.
Here's a quick look at how the stock has performed since going public: Year Year-End Price Annual Growth 2020 ~$9.50 IPO Year 2021 ~$18.00 +89% 2022 ~$7.50 -58% 2023 ~$14.00 +86% 2024 ~$74.00 +428% 2025 (YTD) ~$146.98 +90% (so far) Palantir's turnaround began in 2023, but it's in 2024 and 2025 that the stock really exploded—especially with the rise in interest in AI technologies globally.
That's the big question on many investors' minds. With Palantir stock up nearly 400% in the past 12 months, some wonder if it's too late to buy. But many analysts say there's still room for growth, especially if the company keeps adding new AI customers and winning government contracts. Let's break it down: Short-Term Potential : Palantir is expected to report over $3.5 billion in revenue for 2025 , up from $2.23 billion last year. If earnings continue to rise, the stock could move even higher in the second half of the year.
: Palantir is expected to report , up from $2.23 billion last year. If earnings continue to rise, the stock could move even higher in the second half of the year. Long-Term Growth : Analysts estimate Palantir's revenue could reach $7 billion by 2028 . Profit margins are improving too. The company reported a 26% operating margin in its last quarter — the highest in its history.
: Analysts estimate Palantir's revenue could reach . Profit margins are improving too. The company reported a in its last quarter — the highest in its history. Valuation Risks: Palantir is not cheap. It trades at a forward price-to-earnings ratio of about 256, which is very high compared to most tech companies. That means expectations are also very high. Still, Dan Ives of Wedbush believes Palantir could become the "Oracle of AI" in the next 5 years. He says that with the right execution, the company's total value could reach $1 trillion — it's currently worth about $65 billion. Dan Ives (Wedbush) : Raised target to $160 , says Palantir could be worth $1 trillion within 3–5 years .
: Raised target to , says Palantir could be worth . Jefferies (Brent Thill) : Bearish, but lifted target to $90 amid strong momentum.
: Bearish, but lifted target to $90 amid strong momentum. Visible Alpha consensus: $97 target—reflecting concern over stretched valuation. AI spending by governments is projected to hit $300B+ by 2030 , and Palantir is positioned at the center of this trend.
, and Palantir is positioned at the center of this trend. Commercial AI revenue is expected to exceed $1B/year by 2027 , per Wedbush.
, per Wedbush. Palantir's end-to-end, low-code AI platform offers a moat that's hard for competitors to match. Metric 2024 Actual 2025E 2026E 2028E Target Revenue $2.23B $3.5B $4.8B $7B+ Net Profit $330M $620M $950M $1.5B+ Free Cash Flow $420M $750M $1.1B $2B+ EPS $0.15 $0.32 $0.45 $0.72
If current revenue growth (50%+ YoY) and commercial adoption continue, and with a P/E contraction as earnings rise: Target: $170–$185 by mid-2026 Valuation: Forward P/E could drop from 256 to 110, still high but more justifiable with hypergrowth.
Slower adoption, macro risks, tighter AI budgets may moderate upside. Target: $120–$140 range Especially if Q4 earnings disappoint or competition intensifies.
If AIP traction slows or federal contracts shrink in 2026 elections: Target: $90–$105 Valuation could correct sharply from its current high multiple.
Like every stock, Palantir comes with risks. While its growth story looks strong, there are a few things investors should keep in mind: High Valuation : With such a big rally, any bad news—like lower-than-expected earnings—could lead to a sharp drop in the stock.
: With such a big rally, any bad news—like lower-than-expected earnings—could lead to a sharp drop in the stock. Heavy Reliance on Government Deals : A large part of Palantir's revenue comes from U.S. federal contracts. If political priorities change or budgets shrink, that could affect future deals.
: A large part of Palantir's revenue comes from U.S. federal contracts. If political priorities change or budgets shrink, that could affect future deals. Insider Selling : Some early investors or insiders might take profits at these record levels, which could put pressure on the stock price.
: Some early investors or insiders might take profits at these record levels, which could put pressure on the stock price. AI Competition: More companies are entering the AI market, including big players like Microsoft, Amazon, and Google. Palantir will need to continue innovating to stay ahead. Looking ahead, many experts believe that Palantir still has a bright future if it stays on its current growth path. Here's what the next few years might look like: Year Estimated Revenue Estimated Profit EPS Forecast 2025 $3.5 billion ~$620 million ~$0.32 2026 $4.8 billion ~$950 million ~$0.45 2028 $7 billion+ ~$1.5 billion ~$0.72
Analyst price predictions range from a conservative $97 to a bullish $160+ in the next 12–18 months. If the company keeps expanding its AIP platform and signs more global contracts, it could easily hit those numbers. Q1: Why is Palantir stock called the 'Messi of AI'? Because of its unmatched AI performance and consistent explosive growth in the tech space.
Q2: How much has Palantir stock risen in the past year? Palantir has surged over 400% year-on-year, hitting a record high of $146.88.