Palantir Stock Surges 376% in 2024 Amid AI and Defense Growth

The company's AI platform, defense contracts, and S&P 500 inclusion fuel its rise, but analysts warn of overvaluation risks.

Palantir's stock has increased 376% year-to-date, making it one of the S&P 500's top performers in 2024, with a market cap of $176 billion.
Key drivers include the success of its AI platform (AIP), strong government and commercial revenue growth, and its addition to the S&P 500 in September.
Recent developments, such as forming a consortium with Anduril and others to bid on U.S. defense contracts, have boosted investor confidence in its future growth potential.
Analysts caution that the stock's valuation, trading at 172 times projected 2025 earnings, is significantly higher than industry averages, posing risks for investors.
While Palantir has shown consistent revenue growth and expanding margins, maintaining its momentum in 2025 will depend on accelerating revenue to justify its high valuation.