With shares up 288% year to date, Palantir (PLTR 0.54%) 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?
Throughout the course of the year, some of the most impressive returns in the stock market were achieved on the back of the artificial intelligence revolution. Semiconductor companies like Nvidia (NASDAQ: NVDA) or AI infrastructure providers like Palantir (NASDAQ: PLTR) have benefited greatly.
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Palantir Technologies stock (NASDAQ: PLTR) has had a solid run, rising by almost 4x since the beginning of the year to about $66 presently. Several factors have driven this surge.
This has been a busy month on the news front for Wall Street. Between Election Day, earnings season, and the October inflation report, investors haven't been hurting for catalysts.
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There's plenty of evidence that Palantir's (PLTR) stock is in a bubble. History is not on Palantir's side, and many companies have traded around the lofty expectation its stock currently trades at, and few (if any) have worked out well for investors.
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Artificial intelligence (AI) has dominated Wall Street's attention since bursting onto the scene roughly two years ago. While Nvidia was arguably the hottest AI stock of 2023, Palantir Technologies (PLTR) seems to have taken the lead in this year's race.
Palantir (PLTR) got a pair of price target hikes, including one from Dan Ives of Wedbush. George Tsilis says "there's some merit to what's happening" with Palantir's stock, pointing to its contract work in the private and public sector.
Other companies whose consensus 2025 revenue estimates have increased the most include BlackRock and Coterra Energy.
Palantir (PLTR) is up over 290% year-to-date, and Paul McCarthy shares optimism for some of the company's earnings. However, he weighs if Palantir can continue its exponential growth alongside bigger names in the A.I.