Meet the Best-Performing S&P 500 Stock This Year. It's New to the Index, and You Won't Believe What Wall Street Expects From It in 2025.

Company Overview - The S&P 500 has entered a bull market, achieving an annual gain of over 27% this year, following a 24% increase last year, marking two strong years for investors [1] - Palantir Technologies has emerged as the top-performing AI company in the S&P 500, with significant contributions from its AI-powered platform launched a year ago [2][3] Growth and Demand - Palantir's growth has accelerated recently, with record earnings and an increase in commercial customers from 14 to approximately 300 over four years [5] - The company has signed over 100 deals worth more than $1 million, indicating strong demand from both government and commercial sectors [6] Innovative Strategies - Palantir has introduced AIP boot camps to potential customers, allowing them to quickly understand the impact of its AI platform, which has led to rapid sales growth and conversion into seven-figure deals [7] Market Expectations - Despite Palantir's impressive growth, Wall Street analysts predict a potential decline of over 40% in the stock price over the next 12 months, citing a high forward price-to-earnings ratio of 185x [8] - While the stock appears expensive based on current earnings expectations, long-term growth potential remains, suggesting that investors should consider the company's future earnings trajectory [9][10] Investment Considerations - Palantir may not be suitable for all investors, particularly value investors, but long-term growth investors should take note of its strong commercial momentum and AI-driven platform [10][11]