Palantir Technologies: A $1 Trillion AI Stock to Watch in 2028

Palantir Technologies, a company with a 20-year history in AI, has developed a unique approach to enterprise solutions that leverage generative AI. Its Artificial Intelligence Platform (AIP) provides customized solutions for real-world business problems through workshops and boot camps. Revenue in Q1 increased 39% YoY and 7% sequentially, with US commercial revenue jumping 71% and contract value up 183% YoY. Palantir's growing remaining performance obligation reached $1.9 billion, up 46%.

Palantir Technologies (PLTR), a leading provider of AI-driven enterprise solutions, has seen its stock price surge significantly in recent months. According to discussions on platforms like X, the stock's remarkable performance has been driven by strong earnings, new partnerships, and substantial government contracts. The stock has gained notable attention, with some investors expressing confidence in the company's future growth potential, while others remain cautious about the sustainability of its high valuation [1].

Palantir's stock has doubled so far in 2025, reaching a valuation that is currently trading at an expensive 121 times sales. This surge can be attributed to the increasing demand for AI solutions, particularly its Artificial Intelligence Platform (AIP), which has been integrating generative AI tools to enhance productivity and efficiency for its customers [2]. The company's Q1 2025 results showed a 39% year-over-year (YoY) increase in revenue, with US commercial revenue jumping 71% and contract value rising by 183% YoY. The growing performance obligation reached $1.9 billion, up 46% [3].

Despite the positive performance, there are concerns about the stock's sensitivity to negative news and potential market volatility. Recent insider trading activity and institutional holdings have added to the debate. In the past six months, Palantir insiders have traded the stock 235 times, with 234 sales and only 1 purchase. Additionally, there have been significant changes in institutional holdings, with some major investors like Vanguard Group Inc. reducing their positions while others like Kingstone Capital Partners Texas, LLC have increased their stakes [4].

Analyst ratings and price targets for Palantir Technologies have been mixed. While some analysts have issued buy ratings and price targets above $150, others have issued underperform ratings and targets below $100. This discrepancy highlights the divided sentiment among analysts regarding the stock's potential [5].

Investors should remain vigilant about the risks associated with Palantir's high valuation. While the company's growth story is compelling, any cracks in its performance could lead to a significant correction in the stock price. For those seeking an alternative with a more attractive valuation, BigBear.ai (BBAI) offers a promising option. This company provides AI software solutions to various government agencies and commercial customers, with its stock price surging 66% in 2025 [6].

References:
[1] https://www.nasdaq.com/articles/palantir-technologies-stock-pltr-opinions-recent-price-surge
[2] https://finance.yahoo.com/news/forget-palantir-buy-artificial-intelligence-102200337.html
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