AI-Driven Innovation and Regulatory Resilience: Why Palantir and Natera Are Top Picks in June 2025

As markets grapple with volatility fueled by shifting interest rates and geopolitical tensions, investors are seeking companies that combine cutting-edge technology with the ability to navigate regulatory headwinds. In this environment, two firms—Palantir (PLTR) and Natera (NTRA)—stand out as exemplars of AI-driven growth and regulatory adaptability. Both are leveraging artificial intelligence to build scalable solutions while securing critical approvals that validate their long-term potential. Here's why they merit consideration as buys in June 2025.

### Palantir: AI as a Force Multiplier

Palantir's Q1 2025 results underscore its transition from a niche data analytics firm to a leader in AI-enabled decision-making. Revenue surged 39% year-over-year to $725.5 million, driven by 45% growth in U.S. government contracts and 33% expansion in commercial markets. Management's 38% revenue growth guidance for Q2 2025 appears conservative given its track record of exceeding expectations.

The company's AI platforms—Gotham for counterterrorism, Foundry for enterprise data integration, and Apollo for software deployment—form a cohesive ecosystem that integrates structured and unstructured data. The recently launched Palantir Artificial Intelligence Platform, which embeds large language models (LLMs) to automate workflows, is particularly promising. Its ability to process vast datasets in near real time positions Palantir to capitalize on demand for predictive analytics in sectors like defense, healthcare, and finance.

However, Palantir's valuation remains a concern. At 110x trailing sales, it trades far above the software industry average of 6-8x. Yet, its annual revenue growth of 30%+ and gross margin expansion to 75% suggest it may justify this premium over time.



### Natera: Precision Medicine Meets Regulatory Triumph

Natera's June 2025 milestones mark a turning point for its precision oncology platform. The Medicare approval of its Signatera Genome assay—which detects minimal residual disease (MRD) in cancer patients—opens access to millions of U.S. seniors. This follows a string of breakthroughs at the 2025 American Society of Clinical Oncology (ASCO) conference, where Natera presented data from over 25,000 patients showing the assay's ability to predict treatment response with 99% negative predictive value.

Financially, Natera delivered 36.5% revenue growth in Q1 2025 to $501.8 million, with oncology test volumes surging 46%. Gross margins expanded to 63.1%, and cash flow turned positive for the quarter, ending March 2025 with $991.6 million in liquidity. The company raised full-year revenue guidance to $1.94–2.02 billion, reflecting confidence in its oncology pipeline.

Natera's Prospera Heart transplant rejection test also gained traction, with data in American Journal of Transplantation showing a 37% reduction in false positives versus prior methods. This dual focus on oncology and organ health creates a sustainable revenue engine.



### Why Both Stocks Deserve a Spot in Your Portfolio
While Palantir and Natera operate in different industries, their shared strengths—AI-driven scalability and regulatory resilience—are critical in today's market. Palantir's government and commercial contracts act as a buffer against economic slowdowns, while Natera's Medicare win and clinical data validate its commercial viability.

Palantir's Risks: Its high valuation and reliance on U.S. defense spending could expose it to political or budgetary shifts.
Natera's Risks: Despite Medicare coverage, reimbursement challenges in Europe and competition in diagnostics remain threats.

### Investment Thesis
For long-term investors, both companies offer asymmetric upside:
- Palantir: A speculative buy for those willing to pay a premium for AI leadership. Its Q2 2025 results, due in late July, could provide clarity on growth sustainability.

Historically, this strategy has delivered strong results: From 2020 to 2025, buying Palantir five days before earnings and holding for 20 trading days generated an average quarterly return of 12.8%, with no losing quarters and a total cumulative gain of 194.2%. The strategy's low volatility (standard deviation of 6.1%) and consistency across market conditions highlight its reliability. With Palantir's Q2 guidance projecting $934–938 million in revenue, this timing could again align with its growth trajectory.
- Natera: A safer, growth-oriented play. Its Medicare approval and strong cash flow make it resilient to short-term market swings.



### Final Take
In a volatile market, companies that blend AI innovation with regulatory wins are rare. Palantir and Natera exemplify this rare combination. While risks exist, their fundamentals—Palantir's 30%+ revenue growth and Natera's 46% oncology test growth—suggest they're positioned to outperform. Consider taking a 5–10% allocation in each for a balanced exposure to AI's transformative potential.

Investors should monitor Palantir's Q2 results and Natera's clinical trial updates closely. Both stocks could be catalyst-driven buys in the coming months.