Shares of Palantir (PLTR) surged by more than 25% on Tuesday morning as investors expressed excitement over the defense software maker’s latest advancements in artificial intelligence. During the company’s earnings call on Monday night, Palantir CFO Ryan Taylor reported an unprecedented level of customer enthusiasm and demand for artificial intelligence platforms in US commercial sectors, mentioning the company’s Artificial Intelligence Platform (AIP) nearly 50 times. Palantir anticipates a nearly 40% growth in US commercial revenue in 2024, attributing it to AIP and citing it as a key factor behind the stock’s over-100% surge over the past year. Despite concerns about overvaluation, market action on Tuesday suggests that investors remain enthusiastic about the potential of artificial intelligence, driving tech stock prices upward. While Morningstar equity analyst Malik Ahmed Khan expressed strong optimism for Palantir, he acknowledged that the current valuation cannot be rationalized based on the company’s fundamentals. Jefferies equity analyst Brent Thill, who had previously rated Palantir as a sell, upgraded the stock to a Hold rating after the earnings report, recognizing that AIP growth exceeded expectations, although he cautioned about the stock’s valuation trading at a 23% premium to the large cap average. If you want to know more just click here.
