Here’s Why Palantir Just Won’t Stop Soaring

Palantir Technologies (NASDAQ:PLTR) continues to be one of the most impactful growth stocks in the market. The company’s absolutely incredible surge thus far in 2025, with PLTR stock now up an impressive 62% to start the year, has many momentum investors excited.

Of course, the question now is whether this momentum can continue from here. For those bullish on the AI revolution, and believe in the growth drivers underpinning companies like Palantir, it does feel like the sky can be the limit (on most days).

Key Points About This Article:

• Palantir remains one of the most closely-watched AI beneficiaries, due to the company’s recent growth acceleration tied to its key integrations.
• As one of the purest AI plays in the market, there’s good reason for this momentum – but can it continue?
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Palantir has certainly utilized its position as a leader in the AI-driven data analytics world to its advantage. With expanding commercial adoption (and its status as one of the purest AI plays in the market), there’s good reason why investors continue to hold onto this name.

Let’s dive into whether this surge can continue, and just how robust this momentum may be as we look forward toward 2026 and beyond.

Palantir’s Recent Earnings Report

What’s impressive about Palantir’s recent surge is that this company’s stock price performance hasn’t been only due to hype or “animal spirits” tied to the AI trade. That’s certainly part of the story, but it’s likely a factor that comes in second to the company’s recent performance.

Palantir shares jumped 22% after the company blew past Q4 earnings and revenue estimates. Adjusted EPS hit 14 cents versus 11 cents expected, with revenue reaching $828 million (well ahead of forecasts of $776 million). The AI and big data company projected 2024 revenue will come in between $3.74 billion and $3.76 billion. That guidance raise was well above estimates, and with more positive commentary around the company’s AI advancements driving continued interest, this is a stock that could continue to outperform so long as its beat-and-raise track record continues.

Palantir is now pricing in much more robust growth over time as its positioning in the software sector shores up. With U.S. commercial revenue surging 64% year-over-year to $214 million, it’s clear that Palantir’s services are no longer government-dependent. Instead, the company is seeing robust growth driven by secular CapEx spending trends from the commercial trends. And given that these spending trends have been robust (and are largely expected to continue for years), Palantir is a company with a much more sustainable growth track (from a top and bottom line perspective).

Palantir Looks Like the Tesla of AI

Analyst Dan Ives compared Palantir’s rapid ascent to Oracle and Salesforce, suggesting this is a stock that could reach trillion-dollar status. Now, Dan Ives is among the most bullish analysts anyone can find on the Street. However, I thought this comparison was interesting, with others drawing similarities between Palantir and EV giant Tesla due to the sheer demand for these companies’ shares (and options). 

Trading activity for Palantir continues to surge, with this stock among the most popular for retail traders and those looking to profit from short-term swings. And despite their relative size, both Palantir and Tesla provide the kind of volatility around earnings and key events traders like. Short-dated options bets and other trading strategies are commonly used by many investors to try to “scalp” any gains possible from short-term moves.

And like Tesla, Palantir’s incredible momentum has allowed for a very long and sustained upward trajectory. Whereas other stocks may have consolidated along the way, it’s been a march higher for this company, with no stop in sight.

Palantir’s AI-driven growth propelled a 36% revenue increase and a 370% stock surge, securing 129 major deals without a sales force. Its dominance in defense, finance, and healthcare positions it at the forefront of AI’s industry transformation. However, questions remain about sustaining momentum amid rising competition and the absence of a formal sales team. This, and other headwinds coming out of China (with its lower-cost AI models) could provide some sort of pause to investors, but we’ll see. 

Why Palantir’s Surge Looks Likely to Continue

Trees don’t grow to the sky, and at some point, Palantir’s incredible rise will come to an end. Maybe that means a period of elongated consolidation as the company grows into its valuation. Or maybe it’s a healthy decline in the company’s valuation multiple that simply brings this stock back to earth.

We’ll have to see. For now, Palantir looks like one of those rare companies with large earnings beats and guidance raises that could potentially grow into its multiple. Of course, there are aforementioned headwinds investors are going to consider, and if we do see any sort of large macro shocks, the investing thesis could be called into question.

But for now, I think Palantir’s momentum is simply too hard to bet against. I think comparisons between Palantir and Tesla (or other highly popular stocks among traders) is worth noting. Until retail investors look for other targets to pursue, this is a stock that could continue to dance until the music stops.

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