Palantir's shares are up almost 700% over five years, but its rally has slowed over the past 12 months. Demand for its AI-powered data analytics has been strong: second-quarter revenue rose 93% year over year to $1.94 billion, with U.S. commercial clients up 149%. The company does not build its own AI models and works with third-party APIs, while its work with government clients such as the CIA, NATO and the Department of Defense may support its security reputation. The article cites a forward P/E of 89 versus the S&P 500 average of 19 as a key concern, along with political risks such as its work with ICE. Assuming a return near the S&P 500's roughly 10% annual average, it estimates a price around $216 by end-2027 from $197 on Oct. 29, and suggests investors may wait for a cheaper price before taking a large position.
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Palantirartificial intelligencevaluationsoftwareS&P 500
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Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/30/2026 | 204.81 |
| Change that session | -4.14% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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