No doubt about it, Palantir Technologies (NASDAQ:PLTR) has blasted a giant, gaping hole through expectations during its white-hot bull run over the past few years. The big data analytics company was at it again in Q3 2025, delivering stunning 63% year-over-year revenue growth and strong profit margins.
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And yet, PLTR’s share price has fallen more than 18% since its November 3 earnings report. While some of the blame can be attributed to PLTR’s lofty valuation multiples, looming fears of an AI bubble have also contributed to the post-earnings call gloom.
Are we on the cusp of a bubble-induced freefall? Or are more gains still to come?
Top investor James Foord appreciates the concerns regarding a bubble, and will be watching Palantir closely for harbingers of what’s to come.
“The way I see it, Palantir is the canary in the coal mine for AI, and as long as its growth keeps accelerating, there’s upside left for AI stocks,” explains the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.
Palantir’s growth speaks for itself, points out Foord, who cites the company’s growing U.S. commercial revenues of 121% and a Rule of 40 score of 114% that is “literally in a league of its own.”
The investor notes that Palantir’s unique technologies have demonstrated enormous value for customers, allowing stunning increases in workloads and efficiencies. In one instance, Foord details how two human employees using Palantir’s software were able to migrate a customer off a legacy data warehouse in a matter of days, something that would have previously taken up to two years to accomplish.
“Palantir’s latest results validate the AI narrative, and this is why I continue to be bullish on the AI sector and AI companies,” adds Foord.
The investor isn’t blind to the risks, especially those related to the company’s high valuation multiple. That being said, as long as adoption rates continue to reflect growth, Foord isn’t too worried.
“All in all, Palantir remains a strong company with a rich, but justifiable valuation,” sums up Foord. “The current dip is buyable.”
Foord is electing to upgrade PLTR to a Strong Buy. (To watch Foord’s track record, click here)
Wall Street is a bit more cautious, however. With 11 Holds – accompanied by 3 Buys and 2 Sells – PLTR carries a consensus Hold (i.e., Neutral) track record. Its 12-month average price target of $187.87 implies an upside of ~12%. (See PLTR stock forecast)
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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.