Palantir: AI Stock Poised to Surge 146% by 2033

Published Date : 25/09/2025 

Palantir Technologies (NASDAQ: PLTR) has been making waves in the AI software platforms market, with a swelling customer base and impressive growth. Despite its current high valuation, could this stock still deliver significant gains over the next decade? 

Palantir Technologies (NASDAQ: PLTR) has been one of the hottest stocks on the market in the past year. The company's AI and machine learning software platform is better than that of rivals, and its customer base has been swelling nicely in recent quarters. Existing customers have been expanding their contracts to buy more of its services, leading to a 390% spike in its stock price in the past year.

Palantir's expanding customer base and positive unit economics should help this stock deliver solid gains to investors over the next 10 years. However, the company's current valuation is a cause for concern for many investors. With a price-to-earnings (P/E) ratio of 607 and a sales multiple of 134, there is no denying that Palantir looks extremely expensive.

Only 24% of the 29 analysts covering Palantir rate it as a buy, and the 12-month median price target of $167 points toward a potential drop of 8% from current levels. Despite this, investors looking to buy Palantir would do well to focus on the long-term potential of the company.

Palantir has generated just $3.44 billion in trailing-12-month revenue. That's a tiny piece of the $153 billion in revenue that the AI software platforms market is expected to generate in 2028, clocking an annual growth rate of close to 41%. IDC estimates that this market was worth an estimated $28 billion in 2023. Palantir generated $2.2 billion in revenue that year, which also coincided with the launch of its Artificial Intelligence Platform (AIP) for both government and commercial applications.

Palantir was already involved in providing AI-powered tools to intelligence organizations and governments before it started commercializing this technology. The company's strong partnerships and robust product offerings position it well to capture a larger share of the growing AI market. Despite the high valuation, the tremendous opportunity in the AI software platforms space could help Palantir sustain its strong growth levels over the next decade and deliver more gains to investors.

In conclusion, while Palantir's current valuation is high, the company's strong market position, expanding customer base, and the rapid growth of the AI industry make it a compelling long-term investment. Investors who are willing to look beyond the short-term volatility could see significant returns over the next decade. 

Frequently Asked Questions (FAQS): 

Q: What is Palantir Technologies?

A: Palantir Technologies is a leading provider of AI and machine learning software platforms. The company offers advanced data analysis and decision-making tools to both government and commercial clients.

Q: What is the current stock price of Palantir?

A: As of the latest data, Palantir's stock price is around $182, with a 12-month median price target of $167, indicating a potential drop of 8% from current levels.

Q: Why has Palantir's stock price increased so much?

A: Palantir's stock price has increased significantly due to its expanding customer base, positive unit economics, and the growing demand for AI and machine learning solutions in various industries.

Q: What is the expected growth of the AI software platforms market?

A: The AI software platforms market is expected to generate $153 billion in revenue by 2028, with an annual growth rate of close to 41%. This rapid growth is driven by the increasing adoption of AI technologies across various sectors.

Q: Is Palantir a good long-term investment?

A: Despite its high valuation, Palantir's strong market position and the rapid growth of the AI industry make it a compelling long-term investment. Investors who are willing to look beyond short-term volatility could see significant returns over the next decade.