Palantir Technologies (NASDAQ: PLTR) has emerged as a leading stock on Wall Street, with shares up 51% year-to-date and more than 380% over the past 12 months. Analysts are inquiring where Palantir shares will be in one year as the company shows significant growth potential.
Palantir’s stock surges 51% in 2024: A potential for $1 trillion market cap
Palantir’s stock has experienced a remarkable increase. Just one year ago, its market capitalization was approximately $58 billion. Currently, it exceeds $260 billion, representing over a fourfold return within the year. If this growth trajectory continues, Palantir could reach a $1 trillion market cap in about a year, although this prospect is viewed with caution by some experts.
The surge in Palantir’s stock price is attributed to its solid performance and the company’s strategic positioning in the rapidly expanding field of artificial intelligence (AI). Like the personal computer revolution in the 1980s, AI stands to transform organizational operations, and Palantir aims to be a front-runner in this domain.
In its latest financial report for the three months ending December 31, 2024, Palantir reported a 43% year-over-year growth in overall customers. Revenue grew by 36% compared to the previous year, with a notable 52% increase in overall U.S. revenue and a 64% surge in the U.S. commercial market. The company also achieved a 63% adjusted free cash flow margin.
In recent market activity, Palantir stock reached a record high of $116 before settling at $110.85, marking a 34.38% increase from its price of $82.49 on January 31. The company’s net income grew by 16% year-over-year to $462 million, supported by a 29% increase in revenues to $2.87 billion. U.S. revenues alone surged by 38% to $1.9 billion during this timeframe.
Palantir’s fourth-quarter results included a net income increase of 10% to $79 million and a 36% rise in revenues, totaling $828 million, with U.S. revenues growing by 52% to $558 million. The firm’s market capitalization is currently around $240 billion, surpassing well-known companies such as American Express, McDonald’s, and Disney.
The demand for AI solutions has significantly boosted Palantir’s growth, as evidenced by a 510% rise in its share price over the past year. The fourth-quarter report, released on February 3, 2025, exceeded Wall Street’s expectations, resulting in a stock surge of 23% following the announcement.
Palantir has established itself as one of the top contenders in the AI software market. According to third-party research, it possesses a highly competitive AI platform, positioned to benefit from a market projected to generate $153 billion in revenue by 2028. Accenture projects that AI could potentially double global annual economic growth by 2035, solidifying the importance of integrating AI into business operations.
How 2025 looks like for Palantir stock
The company’s Artificial Intelligence Platform (AIP) supports its commercial and government customers in integrating generative AI into their operations. This innovation facilitates real-time decision-making and enhances operational efficiency. During its latest earnings call, Palantir management noted that AIP drives new customer acquisitions and significant expansion opportunities with existing clients.
Palantir reported a 43% year-over-year increase in customer count during the fourth quarter of 2024, surpassing the 35% growth seen in the same quarter last year. Additionally, the net dollar retention rate improved by 12 percentage points from the previous year, reaching 120%. The remarkable increase in remaining deal value (RDV) of 40% year-over-year to $5.4 billion suggests robust future revenue growth.
Finishing 2024, Palantir observed a 29% revenue increase to $2.87 billion and anticipates a slight uptick in revenue growth to just over 30% in 2025. This expectation stems from the growing demand for its AI software platform, positioning Palantir for potential stronger growth than anticipated in the coming years.
