Palantir Receives Trump’s Praise, Future Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22 hours ago
0mins
Should l Buy PLTR?
Source: Fool
- Government Business Growth: Palantir generated $4.5 billion in sales last year, with over 54% from government contracts, and a 53% growth rate in this sector indicates strong performance that could further drive overall growth.
- Presidential Endorsement Impact: Trump's high praise for Palantir, highlighting its 'great war fighting capabilities and equipment,' not only enhances the company's credibility in securing government contracts but may also attract more investor interest in its stock.
- Commercial vs. Government Growth: While the government business grew at 53%, the commercial sector outpaced it with a 60% growth rate, suggesting that Palantir's competitive edge in the commercial market is also strengthening, potentially leading to dual-driven growth.
- Stock Valuation Challenges: Despite Palantir's robust overall growth, its stock currently trades at a price-to-earnings ratio exceeding 200, prompting investors to carefully consider valuation, as a solid business does not guarantee good returns if the price is ignored.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 145.890
Low
50.00
Averages
192.88
High
255.00
Current: 145.890
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palantir Receives Trump’s Praise, Future Growth Potential
- Government Business Growth: Palantir generated $4.5 billion in sales last year, with over 54% from government contracts, and a 53% growth rate in this sector indicates strong performance that could further drive overall growth.
- Presidential Endorsement Impact: Trump's high praise for Palantir, highlighting its 'great war fighting capabilities and equipment,' not only enhances the company's credibility in securing government contracts but may also attract more investor interest in its stock.
- Commercial vs. Government Growth: While the government business grew at 53%, the commercial sector outpaced it with a 60% growth rate, suggesting that Palantir's competitive edge in the commercial market is also strengthening, potentially leading to dual-driven growth.
- Stock Valuation Challenges: Despite Palantir's robust overall growth, its stock currently trades at a price-to-earnings ratio exceeding 200, prompting investors to carefully consider valuation, as a solid business does not guarantee good returns if the price is ignored.
See More
S&P 500 Hits New Highs Amidst High Valuations
- High Valuations in S&P 500: The S&P 500's cyclically adjusted P/E (CAPE) ratio has reached a 10-year high, indicating high valuations in the market, making it increasingly difficult to find bargain stocks despite the overall market rebound.
- Costco's Market Performance: Costco's P/E ratio stands at 52, reflecting its strong demand and reliability in the retail sector, with March sales increasing by 11.3% year-over-year, showcasing robust market demand despite a challenging comparison period.
- Palantir's Rapid Growth: Palantir's revenue surged 70% year-over-year in Q4 2025, driven by a remarkable 137% growth in U.S. commercial contracts, completing 180 deals worth over $1 million, highlighting its strong performance and appeal in the AI sector.
- Investment Opportunities: Although Costco and Palantir are currently highly valued, they remain on investors' buy lists should their stock prices drop significantly, particularly after earnings reports or during market fluctuations, potentially offering better entry points.
See More
Analysis of Market Performance for Costco and Palantir
- Costco Sales Growth: In March, Costco reported an 11.3% year-over-year sales increase, with comparable sales rising 9.4%, demonstrating the company's strong resilience and customer loyalty in the retail market, further solidifying its market leadership.
- Valuation Challenges: With a P/E ratio of 52, Costco's stock price remains high despite slowing growth, reflecting the market's strong recognition of its stability and reliability, which may limit short-term investment opportunities.
- Palantir Contract Value Milestone: Palantir achieved a record total contract value of $4.3 billion in Q4 2025, with a 70% year-over-year revenue increase, driven by a remarkable 137% growth in U.S. commercial contracts, highlighting strong demand in the AI sector.
- AI-Driven Growth Potential: Palantir's operating margin stands at 57% and free cash flow margin at 56%, indicating unique advantages in AI technology application, and despite a high P/E ratio of 231, it continues to attract investor interest.
See More
Divergent Performance Among Tech Stocks in US Market
- Micron Technology Surge: Micron's stock has risen 59% in 2026, with Q2 revenue soaring 196% to $23.8 billion and net income skyrocketing 682% to $12.20 per share, driven by unprecedented demand for memory chips from AI data centers, although future supply-demand fluctuations pose risks.
- Comfort Systems Performance: Comfort Systems' stock increased 77% in 2026, with Q4 revenue up 41% to $2.6 billion and net income rising 129% to $9.37 per share, reflecting strong demand from tech sector clients, with projected annual growth of 34% over the next three years.
- Memory Chip Shortage Impact: The construction of AI data centers has led to a surge in demand for memory chips, causing DRAM and NAND contract prices to rise approximately sevenfold over the past year, with analysts predicting this shortage to last until 2028, further boosting Micron's market performance.
- Investor Caution on Nvidia and Palantir: Despite Nvidia and Palantir's crucial roles in the AI economy, investor hesitance regarding Nvidia's sustainability and Palantir's valuation has resulted in their stock performances diverging, with Nvidia up 8% and Palantir down 18%.
See More
Micron Technology and Comfort Systems Shares Surge Significantly
- Micron's Revenue Surge: Micron Technology reported a staggering 196% revenue increase to $23.8 billion in Q2 2026, with non-GAAP net income soaring 682% to $12.20 per share, underscoring the robust demand for memory chips driven by AI data centers and solidifying its strategic position in the semiconductor industry.
- Memory Chip Shortage: The construction of AI data centers has led to a dramatic surge in demand for memory chips, with DRAM and NAND contract prices rising approximately sevenfold over the past year, and this shortage is expected to persist until 2028, providing strong support for Micron's future growth.
- Comfort Systems' Strong Performance: Comfort Systems experienced a 41% revenue increase to $2.6 billion in Q4, with net income soaring 129% to $9.37 per share, reflecting strong demand from technology sector clients for its mechanical and electrical services, indicating a positive outlook for future growth.
- Future Growth Expectations: Wall Street anticipates Micron's earnings will grow at an annual rate of 75% over the next three years, while Comfort Systems is expected to see a 34% annual growth rate, making both companies attractive in the current market environment, with Micron's valuation appearing relatively cheap and Comfort Systems' valuation considered fair.
See More
U.S. Defense Budget Sees Major Increase Amid Iran War
- Defense Budget Surge: The Trump administration has requested $200 billion from Congress for the Iran war, alongside plans to increase the 2027 military budget from $1 trillion to $1.5 trillion, which is expected to significantly boost investment interest in the defense sector.
- Palantir's Revenue Growth: Palantir Technologies reported fourth-quarter revenue of $1.4 billion, a 70% increase year-over-year, with U.S. government revenue reaching $570 million, up 66%, highlighting strong demand and market position in military data analytics.
- AeroVironment's New Product Launch: AeroVironment's recently announced Mayhem 10 unmanned system boasts a range of 62 miles and a 10-pound payload, with the CEO stating it sets a new standard for operational versatility and survivability on the modern battlefield, contributing to a 143% revenue increase to $408 million in Q3 of fiscal 2026.
- ETF Investment Opportunity: The Invesco Aerospace & Defense ETF tracks the Spade Defense Index with $8.3 billion in assets under management and an expense ratio of 0.58%, providing investors with a convenient way to capitalize on rising defense spending while ensuring portfolio diversification.
See More
Palantir Receives Trump’s Praise, Future Growth Potential
- Government Business Growth: Palantir generated $4.5 billion in sales last year, with over 54% from government contracts, and a 53% growth rate in this sector indicates strong performance that could further drive overall growth.
- Presidential Endorsement Impact: Trump's high praise for Palantir, highlighting its 'great war fighting capabilities and equipment,' not only enhances the company's credibility in securing government contracts but may also attract more investor interest in its stock.
- Commercial vs. Government Growth: While the government business grew at 53%, the commercial sector outpaced it with a 60% growth rate, suggesting that Palantir's competitive edge in the commercial market is also strengthening, potentially leading to dual-driven growth.
- Stock Valuation Challenges: Despite Palantir's robust overall growth, its stock currently trades at a price-to-earnings ratio exceeding 200, prompting investors to carefully consider valuation, as a solid business does not guarantee good returns if the price is ignored.
See More
S&P 500 Hits New Highs Amidst High Valuations
- High Valuations in S&P 500: The S&P 500's cyclically adjusted P/E (CAPE) ratio has reached a 10-year high, indicating high valuations in the market, making it increasingly difficult to find bargain stocks despite the overall market rebound.
- Costco's Market Performance: Costco's P/E ratio stands at 52, reflecting its strong demand and reliability in the retail sector, with March sales increasing by 11.3% year-over-year, showcasing robust market demand despite a challenging comparison period.
- Palantir's Rapid Growth: Palantir's revenue surged 70% year-over-year in Q4 2025, driven by a remarkable 137% growth in U.S. commercial contracts, completing 180 deals worth over $1 million, highlighting its strong performance and appeal in the AI sector.
- Investment Opportunities: Although Costco and Palantir are currently highly valued, they remain on investors' buy lists should their stock prices drop significantly, particularly after earnings reports or during market fluctuations, potentially offering better entry points.
See More
Analysis of Market Performance for Costco and Palantir
- Costco Sales Growth: In March, Costco reported an 11.3% year-over-year sales increase, with comparable sales rising 9.4%, demonstrating the company's strong resilience and customer loyalty in the retail market, further solidifying its market leadership.
- Valuation Challenges: With a P/E ratio of 52, Costco's stock price remains high despite slowing growth, reflecting the market's strong recognition of its stability and reliability, which may limit short-term investment opportunities.
- Palantir Contract Value Milestone: Palantir achieved a record total contract value of $4.3 billion in Q4 2025, with a 70% year-over-year revenue increase, driven by a remarkable 137% growth in U.S. commercial contracts, highlighting strong demand in the AI sector.
- AI-Driven Growth Potential: Palantir's operating margin stands at 57% and free cash flow margin at 56%, indicating unique advantages in AI technology application, and despite a high P/E ratio of 231, it continues to attract investor interest.
See More
Divergent Performance Among Tech Stocks in US Market
- Micron Technology Surge: Micron's stock has risen 59% in 2026, with Q2 revenue soaring 196% to $23.8 billion and net income skyrocketing 682% to $12.20 per share, driven by unprecedented demand for memory chips from AI data centers, although future supply-demand fluctuations pose risks.
- Comfort Systems Performance: Comfort Systems' stock increased 77% in 2026, with Q4 revenue up 41% to $2.6 billion and net income rising 129% to $9.37 per share, reflecting strong demand from tech sector clients, with projected annual growth of 34% over the next three years.
- Memory Chip Shortage Impact: The construction of AI data centers has led to a surge in demand for memory chips, causing DRAM and NAND contract prices to rise approximately sevenfold over the past year, with analysts predicting this shortage to last until 2028, further boosting Micron's market performance.
- Investor Caution on Nvidia and Palantir: Despite Nvidia and Palantir's crucial roles in the AI economy, investor hesitance regarding Nvidia's sustainability and Palantir's valuation has resulted in their stock performances diverging, with Nvidia up 8% and Palantir down 18%.
See More
Micron Technology and Comfort Systems Shares Surge Significantly
- Micron's Revenue Surge: Micron Technology reported a staggering 196% revenue increase to $23.8 billion in Q2 2026, with non-GAAP net income soaring 682% to $12.20 per share, underscoring the robust demand for memory chips driven by AI data centers and solidifying its strategic position in the semiconductor industry.
- Memory Chip Shortage: The construction of AI data centers has led to a dramatic surge in demand for memory chips, with DRAM and NAND contract prices rising approximately sevenfold over the past year, and this shortage is expected to persist until 2028, providing strong support for Micron's future growth.
- Comfort Systems' Strong Performance: Comfort Systems experienced a 41% revenue increase to $2.6 billion in Q4, with net income soaring 129% to $9.37 per share, reflecting strong demand from technology sector clients for its mechanical and electrical services, indicating a positive outlook for future growth.
- Future Growth Expectations: Wall Street anticipates Micron's earnings will grow at an annual rate of 75% over the next three years, while Comfort Systems is expected to see a 34% annual growth rate, making both companies attractive in the current market environment, with Micron's valuation appearing relatively cheap and Comfort Systems' valuation considered fair.
See More
U.S. Defense Budget Sees Major Increase Amid Iran War
- Defense Budget Surge: The Trump administration has requested $200 billion from Congress for the Iran war, alongside plans to increase the 2027 military budget from $1 trillion to $1.5 trillion, which is expected to significantly boost investment interest in the defense sector.
- Palantir's Revenue Growth: Palantir Technologies reported fourth-quarter revenue of $1.4 billion, a 70% increase year-over-year, with U.S. government revenue reaching $570 million, up 66%, highlighting strong demand and market position in military data analytics.
- AeroVironment's New Product Launch: AeroVironment's recently announced Mayhem 10 unmanned system boasts a range of 62 miles and a 10-pound payload, with the CEO stating it sets a new standard for operational versatility and survivability on the modern battlefield, contributing to a 143% revenue increase to $408 million in Q3 of fiscal 2026.
- ETF Investment Opportunity: The Invesco Aerospace & Defense ETF tracks the Spade Defense Index with $8.3 billion in assets under management and an expense ratio of 0.58%, providing investors with a convenient way to capitalize on rising defense spending while ensuring portfolio diversification.
See More
