‘Not Just Hype,’ Says Top Investor About Palantir Stock

Palantir (NASDAQ:PLTR) shares have often been criticized for their lofty valuation – one of the few knocks against a company that has delivered strong gains in revenue, profit, and customer growth. PLTR skyrocketed 340% over the past year, even after running into a few speed bumps in 2025.

Those bumps – including worries about decreasing U.S. defense spending, CEO Alex Karp offloading shares, and the broader market turmoil – have caused the stock to lose roughly a quarter of its value over the past two months.

That pullback has trimmed the valuation somewhat, but the stock still trades at a lofty 167.26x earnings, well above the S&P 500 tech sector’s average of 23.77x.

Even so, top investor Rick Orford – ranked in the top 2% of all TipRanks stock pros – believes Palantir is still undervalued and sees plenty to like here.

“Palantir Technologies is a strong buy due to its impressive AI software platforms and expanding commercial and non-U.S. government sector presence,” asserts Orford.

Orford cites PLTR’s improving revenues – both on a yearly basis and in the most recent quarter – and predicts that the company will continue along this upward trajectory. Since a significant portion of its revenue comes from recurring subscriptions, customer acquisition costs are expected to decrease, which should help margins improve going forward.

Moreover, the 43% year-over-year client growth gives the investor strong confidence that the company will generate substantial sales going forward. Orford is particularly bullish regarding NATO’s acquisition of PLTR’s new Maven Smart System, calling it “a milestone for the company.” In fact, the investor believes that the partnership could prove exceptionally lucrative for PLTR, especially as it could drum up other defense-related business for the firm.

“Should this product work well, I wouldn’t be surprised if we saw Maven deployed to other NATO countries,” adds Orford.

In short, Orford believes there’s still significant runway ahead for Palantir, and he’s backing that view with a Strong Buy rating on the stock. (To watch Orford’s track record, click here)

Wall Street, however, isn’t quite as enthusiastic. The consensus tells a more cautious tale: out of 18 recent analyst reviews, only 3 call it a Buy, while 12 suggest a Hold and 3 recommend a Sell. The average 12-month price target stands at $93.69, implying the stock could be in for a relatively flat ride from here. (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.