Palantir Technologies: AI Superstar or Bubble Waiting to Burst?

Palantir Technologies ( (PLTR) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Palantir Technologies has cemented its status as one of 2025’s hottest AI names, with the stock soaring more than 150% year-to-date on the back of explosive demand for its Artificial Intelligence Platform (AIP) and record revenue growth. In its latest quarter, revenue jumped 63% year-over-year, fueled by a 121% surge in U.S. commercial sales and a 52% increase in U.S. government revenue. Long-term government contracts remain a key pillar, highlighted by a three-year renewal with France’s domestic intelligence agency (DGSI). Bulls argue that Palantir is becoming a core infrastructure player for data and AI across governments and enterprises, and top Bank of America analyst Mariana Perez Mora has reiterated a Buy rating with a price target of $255, signaling confidence that growth can continue at a rapid pace.

However, the rally has also made Palantir Technologies one of the most hotly debated stocks in the market. The shares now trade at an eye-watering valuation, with forward price-to-earnings multiples well into the hundreds, far above the software sector average. This has left Wall Street divided: the stock carries a Hold consensus, with most analysts seeing limited upside and an average target around $187. Some investors, such as David Jagielski, warn of a sharp correction and even see the possibility of the stock falling below $100 if market conditions cool or AI enthusiasm fades. Adding to the skepticism, famed investor Michael Burry has disclosed a short position in Palantir, framing the current AI boom as a potential tech bubble. For investors, Palantir now represents a classic high-reward, high-risk AI bet—backed by strong fundamentals and contracts, but priced for perfection in a market that may be increasingly wary of sky-high valuations.