Palantir's 284% Surge Since 2023: Is a Split Looming? Here’s Why This AI Leader Could Keep Climbing

The stock market is full of surprises, but few have matched the meteoric rise of Palantir Technologies (PLTR) over the past two years. From a post-pandemic low of just $6.39 in late 2022, PLTR’s stock price has soared to $124.28 by May 2025, marking a 1,873% increase from its 2022 nadir and a 284% surge since early 2023. This growth has sparked speculation about a potential stock split—common among high-flying tech stocks—to make shares more affordable. But is a split likely? And does it even matter?

Let’s dive into the data.

The Palantir Story: From Undervalued to AI Darling

Palantir’s rise isn’t just a stock story—it’s a case study in transformative technology. The company’s AI-driven data platforms, Gotham (for defense/intelligence) and Foundry (for enterprise), have become critical tools for governments and Fortune 500 firms. In 2024 alone, revenue jumped 29% year-over-year to $2.9 billion, with 36% growth in Q4 2024 fueled by its new generative AI-powered Artificial Intelligence Platform (AIP).

The stock’s valuation reflects this momentum. While its trailing P/E ratio of 600x and forward P/E of 200x are stratospheric compared to the S&P 500’s average of 19x, investors are betting on long-term dominance in AI-driven analytics.

Why a Stock Split is Unlikely—and Why It Doesn’t Matter

Analysts are skeptical about a split for three key reasons:

1. Price Still Below Split Thresholds:
   Unlike companies like Nvidia (NVDA) or Broadcom (AVGO), which split after hitting $1,000+, PLTR’s $124 price is far below traditional split triggers. Even among the Dow Jones’ 30 stocks, only eight trade below PLTR’s level, reducing index-related pressure to split.

2. Liquidity Already High:
   At $124, PLTR is accessible to most investors—unlike $1,000+ stocks like Snowflake (SNOW). Fractional trading and low daily volatility ($110–$125 range in late 2024) mean a split offers little practical benefit.

3. No Historical Precedent:
   palantir has never split its stock since its 2020 IPO. Management appears content with its current structure, focusing instead on share buybacks and dividend growth (if any).

The takeaway? Don’t hold your breath for a split.

Why Investors Should Still Buy Now

Even without a split, PLTR’s fundamentals make it a compelling buy:

1. Defense & Government Contracts Drive Stability

• $83.14 billion market cap (May 2025) reflects its role as a $100 billion AI infrastructure play.
• 85% of revenue comes from recurring, long-term contracts, including U.S. defense and intelligence agencies.
• Its AIP platform’s ability to analyze petabytes of data in real time positions it as an indispensable tool for global security, a sector with no near-term tech disruption risks.

2. Enterprise Growth is Exploding

• Commercial revenue grew 40% in 2024, with wins at Shell, Siemens, and UnitedHealthcare.
• The Foundry platform now serves over 3,000 enterprise customers, up from 2,000 in 2022.

3. Valuation Risks? Yes—but Growth Could Outpace Them

• Analysts forecast 26% revenue growth in 2026, supported by $462 million in net income (2024).
• Even at a 100x P/S ratio, PLTR’s AI-driven moat could justify premium multiples if it maintains 30%+ annual revenue growth.

Risks to Consider

• Overvaluation: A P/E of 600x is unsustainable if growth slows.
• Regulatory Headwinds: Government contracts face scrutiny in an election year.
• Competition: Startups like C3.ai and legacy players like IBM are ramping up AI offerings.

Conclusion: Buy the Fundamentals, Not the Split

Palantir’s 284% surge since 2023 isn’t a fluke—it’s the payoff of a decade-long bet on AI-driven data analytics. While a stock split remains unlikely, investors shouldn’t let that deter them. With $2.9 billion in revenue, 3,000+ customers, and governments racing to modernize their data infrastructure, PLTR’s core value proposition is too strong to ignore.

The verdict?
Take a position in PLTR now—before its AI platform becomes the de facto standard for global decision-making. Just keep an eye on those valuation multiples; even the best stocks can overheat.

Final Note: Past performance doesn’t guarantee future results. Always assess your risk tolerance and consult a financial advisor before investing.