Up 288%, Is Palantir Stock a Buy?
With shares up 288% year to date, Palantir (NYSE: PLTR) is one of 2024's best-performing artificial intelligence (AI) stocks, easily beating out hardware giant Nvidia (up 188%). But do this data analytics company's fundamentals justify its $140 billion market cap? Let's dig deeper into Palantir's situation to determine if the stock is still a good buy.
Roughly two years since the launch of OpenAI's ChatGPT in late 2022, analysts remain optimistic about the AI industry. According to a report from Bain & Co. released in September, the AI revenue opportunity could grow by 40% to 55% annually from $185 billion last year to a range of $780 billion to $990 billion by 2027 as companies leave the experimental phase and begin to incorporate the technology into their actual operations.
Palantir is positioned to monetize this trend better than most. As a big data analytics company, its business involves synthesizing large volumes of information to help clients discover trends and detect problems like fraud. AI large language models (LLMs) can make this process work in real-time scenarios like combat or law enforcement missions.
Source Fool.com
