Palantir Stock (PLTR) Is the Nasdaq-100’s Top Performer. Here’s Why

Palantir Technologies (PLTR) has had a stunning 2025 so far. The data analytics firm has surged 62% year-to-date, making it the top performer on the Nasdaq-100 (NDX). After hitting an all-time high of $130 in May, Palantir has firmly established itself as one of the biggest winners from the AI boom, building on its momentum from the past two years. Growing demand for artificial intelligence, a strong Q1 earnings report, and a steady stream of government contracts have fueled this rally.

Initially known for providing data tools to U.S. government agencies for counterterrorism and military missions, Palantir is now expanding its reach. The company is moving into fields like healthcare and financial services, using generative AI to fuel further growth. Its main platform —the Artificial Intelligence Platform (AIP) — helps users make faster and smarter choices by using machine learning and large amounts of data.

Highlighting its growing credibility, research firm Forrester recently named Palantir a leader in AI technology. The firm also projects that Palantir will grow its revenue by 40% annually to hit $153 billion by 2028, signaling that this pace may still continue.

Key Catalysts Driving PLTR Growth

One of Palantir’s biggest strengths is its deep role in defense and national security. That momentum recently got a major lift when the U.S. Army awarded a new $795 million deal for the Maven Smart System — an AI tool used for data analysis and target tracking. This deal pushes the total value of Palantir’s work on Maven to about $1.3 billion, marking its first billion-dollar contract. The company also signed a new deal to support NATO’s use of AI, further cementing its role in global defense systems.

Secondly, Palantir has kept up its strong financial momentum, beating earnings estimates for seven straight quarters. In Q1 2025, revenue surged 39% year-over-year to $883.85 million, topping forecasts by nearly $22 million. Growth was led by U.S. commercial sales, which jumped 71% to $255 million, while U.S. government revenue climbed 45% to $373 million. Adjusted EPS came in at $0.13, in line with expectations. Looking ahead, Palantir raised its full-year revenue outlook to as high as $3.9 billion — well above both its previous forecast and Wall Street estimates. These strong results have fueled investor confidence and added to the stock’s sharp rise this year.

What Analysts Are Saying

Several analysts remain upbeat about Palantir’s long-term prospects. Earlier this year, Morningstar’s Mike Giarelli called it “the next software juggernaut.” More recently, Wedbush analyst Daniel Ives highlighted Palantir’s expanding role in federal AI initiatives, saying the company is well positioned to benefit from what he called a “tidal wave” of government AI spending across North America and Europe.

That said, even the bulls are cautious when it comes to Palantir’s valuation. Despite strong momentum in both commercial and government segments, Palantir’s stock continues to trade at extremely high multiples, which many investors view as unsustainable. If growth slows or expectations aren’t met, the stock could be vulnerable to a significant pullback.

Is PLTR a Good Stock to Buy?

Turning to Wall Street, analysts have a Hold consensus rating on Palantir Technologies stock based on three Buys, eleven Holds, and four Sells assigned in the past three months, as indicated by the graphic below. The average PLTR stock price target is $100.13, implying downside potential of 18.14%.

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