Palantir's Under-The-Radar Opportunity: AI in Government in 2025

Palantir Technologies (PLTR) has been on a remarkable run in 2024, with its stock price surging over 320% year-to-date. The company's inclusion in the S&P 500 and Nasdaq-100 indices, along with strong Q2 2024 results, has fueled investor optimism. However, the most important part of Palantir's business in 2025 may lie in an under-the-radar opportunity: its government contracts. As AI becomes increasingly crucial for national security and intelligence gathering, Palantir's expertise in this field positions it well to capitalize on this trend.

Palantir's core products, such as Palantir Gotham and Palantir Foundry, already cater to government agencies. However, the company's growing focus on AI and data analytics could lead to a surge in government business. Palantir's recent partnership with Meta and its work on AI-driven tools for law enforcement further underscore the company's potential in this area.

The global AI market is projected to reach $190.61 billion by 2025, with a CAGR of 33.1% from 2020 to 2025. Palantir's AI Platform (AIP) provides unified access to open-source, self-hosted, and commercial large language models (LLMs), transforming structured and unstructured data into LLM-understandable objects and turning organizations' actions and processes into tools for humans and LLM-driven agents. With its unique capabilities and market positioning, Palantir is well-positioned to capture a significant portion of this growth.

Palantir's AI Platform (AIP) is expected to contribute significantly to its revenue growth and market expansion in 2025. As AI adoption accelerates, Palantir's AIP will be crucial in helping businesses harness the power of AI, driving demand and revenue growth. By leveraging its existing product offerings and expanding into AI-driven government solutions, Palantir could see a significant boost in its business in 2025.

In conclusion, Palantir's most promising under-the-radar opportunity in 2025 is its Artificial Intelligence Platform (AIP). With a forward P/E of 160.75995 and a market cap of $173.29 billion, Palantir's AIP is poised to be a key driver of its business in 2025. As AI adoption accelerates and government agencies increasingly rely on AI for national security and intelligence gathering, Palantir's expertise in this field positions it well to capitalize on this growing demand.