Palantir Technologies (PLTR:NASDAQ) is set to become one of the most prominent titles in the US stock market in 2025. The company’s stock has reached all-time highs and has seen year-over-year growth of more than 500%. Although its position in the artificial intelligence and defense industries continues to grow stronger, investors and analysts alike are questioning whether the current valuation matches the fundamentals. This article analyzes current developments, the company’s strategic direction, and potential risks associated with further growth.
1. Share Price Evolution and Market Sentiment
Since the beginning of 2025, Palantir shares have appreciated by approximately 87%, reaching an all-time high of $144.86 on June 16. The current price is around USD 142.90, with recent trading data indicating moderate volatility. This increase reflects not only improving fundamentals, but also strong retail interest and optimism associated with AI development.
2. Diversifying Revenue: from Government Contracts to Commercial AI
Previously, Palantir Technologies (PLTR:NASDAQ) was primarily known as a supplier of software solutions to the US government. However, there is a significant shift towards the commercial segment in 2025:
– The U.S. commercial segment grew 64% year-on-year, with overall revenue growth reaching 36%.
– Palantir is implementing a “Forward Deployed Engineers” model, deploying technical teams directly to customers to develop tailored AI solutions.
– In the defence sector, Palantir continues to expand, winning the Maven contract worth €795m.
3. Risks and investment recommendations
Despite the growth momentum, there remain clear risks to Palantir:
– Valuation is extremely high and prone to reassessment if growth slows.
– Profitability is under pressure despite increasing margins due to high development and client acquisition costs.
– Market expectations are set very high, increasing the risk of a negative reaction to any disappointing quarterly results.
Conclusion
In 2025, Palantir Technologies becomes a symbol of the transformation from an exclusive supplier of government systems to a universal AI platform with global reach. Although the company benefits from megatrends such as artificial intelligence and cybersecurity, the current valuation requires careful monitoring of future performance and the macroeconomic environment. Analysts at Zacks.com have set a high average target price of $155 per share for the short-to-medium term investment horizon.
