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Palantir’s AI Surge Extends Cash-Flow Lead as Valuation Debate Intensifies

Analysts weigh premium pricing against accelerating growth with strong cash yields.

Overview

  • Shares have climbed 134% this year and more than 2,000% since AIP’s April 2023 launch, lifting market value to roughly $422 billion.
  • Third-quarter results showed 63% year-over-year revenue growth and a 200% jump in EPS, with U.S. commercial revenue up 121%.
  • Management raised guidance to at least 61% revenue growth, extending a streak of accelerating quarterly performance.
  • Over the past year, Palantir generated about $1.8 billion in free cash flow on roughly $3.9 billion of revenue, a margin near 47%.
  • New analysis highlights a steep valuation—about 109 times trailing revenue versus roughly 24 times for Nvidia—while questioning how far Palantir’s addressable market can stretch beyond government-focused analytics.