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Palantir’s AI Surge Collides With Lofty Valuation as BofA Reaffirms Buy

BofA's latest check-ins cite robust adoption, prompting a reiterated Buy.

Overview

  • Shares have climbed roughly 150% in 2025 and about 2,700% since 2023, lifting Palantir to the 19th-largest U.S. public company by market value.
  • AIP-fueled growth accelerated with Q3 revenue up 63% year over year, including 73% growth in commercial sales to $548 million and 55% growth in government sales to $633 million.
  • Recent wins include a two-year $448 million U.S. Navy ShipOS award using Foundry and AIP and an earlier U.S. Army agreement reported at up to $10 billion over a decade.
  • Palantir’s tie-up with Nvidia integrates its data platforms with Nvidia GPUs and CUDA, positioning the companies to deliver a full-stack system for accelerated computing.
  • Valuation scrutiny has intensified with a cited price-to-sales ratio near 127, and some analyses project potential 2026 downside ranging from roughly 25% to about 50% if growth or sentiment cools.