Palantir: Could It Become the New Nvidia?
2024.12.23 08:06
In the year 2023, I was one of the few who predicted Nvidia (NASDAQ:)’s great success, and today I will talk about another company that could follow in its footsteps: Palantir Technologies Inc (NASDAQ:).
Artificial intelligence will become increasingly important for businesses as it moves from the experimental stage to strategic adoption. This will help solve specific problems and promote efficiency, innovation, and sustainable growth within companies. Alongside industry giants such as Alphabet (NASDAQ:), Microsoft (NASDAQ:), Amazon (NASDAQ:) and Meta (NASDAQ:), this company could represent a real revolution in the way data is managed and processed in the AI ecosystem, Offering solutions that redefine the standards of enterprise software and advanced analytics.
Although Nvidia is at the top of the AI hardware market, Palantir’s future will depend on its ability to make their software and data analytics solutions indispensable, in a market where names like Snowflake (NYSE:) and Databricks already stand out.
In the current technology landscape, Palantir Technologies (NASDAQ:) stands out as one of the most interesting companies. Over the past two years it has implemented major changes in its business model and consolidated its position as a leader in the use of artificial intelligence for data analysis. The launch of the Artificial Intelligence Platform (AIP) has enabled Palantir to integrate advanced language models with complex data from the corporate world, providing an invaluable solution for numerous clients in both the public and private sectors.
Palantir’s strength lies in its ability to combine business data with artificial intelligence, turning a chaotic mass of information into clear and concrete operational decisions. It is a real revolution in the way companies manage and use their data.
With global spending estimated at more than $1 trillion over the next three years, artificial intelligence is becoming increasingly important. There are many opportunities for companies to establish themselves as strategic partners in the management and use of data. While Nvidia is a leader in hardware, Palantir could become a key player in software and have significant growth margins by 2025.
Being a leading artificial intelligence company is not only about innovation and technological development, but also about financial success in the market. Wall Street valuation and company fundamentals are equally important to reach the top of the industry.
In 2025, after the stock moves from the New York Stock Exchange (NYSE) to next Dec. 23, Palantir is expected to continue to grow and gain value. In the third quarter of 2024, the company saw 30 percent year-over-year revenue growth and generated adjusted free cash flow of $434.5 million. Its financial results show that Palantir is moving toward more growth, as evidenced by its earnings forecast for the next quarter ($0.11 per share), which is up 37.5 percent from the same period last year. In addition, revenue is continuing to develop positively with a projected 28.3 percent growth for this quarter.
Palantir has made multimillion-dollar deals with various partners, including a five-year contract worth nearly $100 million to improve the U.S. military’s artificial intelligence and machine learning capabilities. Unlike other software companies, Palantir’s strength lies in its ability to provide proprietary solutions that optimize the use of AI and increase the operational efficiency of its customers. This unique position has led some experts to predict the stock will rise as much as 111 percent by 2025.
Right now, the stock is expensive, but if there is a technical price correction around $50, I will buy the stock with a goal of reaching $100.
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