Though its galloping share price has slowed over the past few months, Palantir (NASDAQ:PLTR) remains a prominent name in the AI space. The company has continued on its upward sprint, blasting through revenue projections and delivering solid profit margins.
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Its Q4 and full-year 2025 numbers added further evidence of the company’s prowess. Its Q4 revenue grew 70% year-over-year to hit $1.407 billion, while full-year revenue sprouted 56% from the previous year to clock in at $4.475 billion.
Profits were also robust, with a 57% operating margin. That led to a Rule of 40 score of 127%, head and shoulders above the rest of the field.
And yet, despite this solid track record, PLTR has mostly been on a downward trajectory since hitting an all-time high in the fall. That slide has continued for good chunks of 2026, and its share price is down close to 20% year-to-date. The company’s high valuation and worries of an AI bubble seem to have scared off many investors.
Count top investor Chris Neiger among them.
“I just think Palantir stock is too darn expensive,” states the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.
Neiger admits this isn’t exactly a “hot take,” as the company’s forward price-to-earnings ratio north of 100x is elevated “even by today’s high-flying valuations.”
That’s not to say that the investor doesn’t recognize the company’s success in riding the AI wave. Palantir has enlisted hundreds of customers in just a few short years, clearly benefiting from the “explosion” of AI throughout the ecosystem.
Still, clearly Neiger isn’t alone with his dour view. After all, he points out, PLTR has lost significant ground over the last half year, while the S&P 500 has emerged into positive territory. And that worries him going forward, especially in the current environment.
“I think Palantir’s high valuation, paired with the current volatility among many tech stocks, has me wondering where its stock is headed,” adds Neiger. “I can’t do it.” (To watch Neiger’s track record, click here)
Wall Street, on the other hand, doesn’t seem to view the price as prohibitive. With 14 Buys, 5 Holds, and 2 Sells, PLTR enjoys a Moderate Buy consensus rating. Its 12-month average price target of $191.28 points to an upside of ~34%. (See PLTR stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.