This AI Company Is The S&P 500's Best Performing Stock Of 2024 (Hint: It's Not Nvidia)

Core Insights - Palantir Technologies has emerged as the top-performing stock on the S&P 500 in 2024, with a year-to-date return of 369% through Friday [7][12] - The company's market capitalization has surged from $37 billion to approximately $180 billion, marking a ninefold increase from its $20 billion valuation at its 2020 IPO [16] - Palantir's stock performance is attributed to the growing demand for AI platforms in both commercial and government sectors, with significant revenue coming from government contracts [17][21] Company Performance - Palantir's stock has seen a remarkable rally of 166% since its announcement to join the S&P [1] - The company is recognized for its high profit margins and advanced technology, making it a favorite on Wall Street [18] - Despite its high valuation, Palantir's price-to-sales ratio stands at 67, significantly higher than its peers, indicating its status as the most expensive stock on the S&P [24] Market Context - The rise in Palantir's stock coincides with a broader AI boom and increased optimism regarding defense spending under the incoming Trump administration, with shares up 58% since Election Day [22][21] - Palantir is also the third-best performing stock among public companies valued at over $50 billion, trailing only Applovin and MicroStrategy [23] Leadership and Controversies - CEO Alex Karp, who has a net worth of approximately $7.5 billion, leads the company amidst controversies related to its government contracts and political affiliations [25][18] - The company has faced criticism from human rights groups for its involvement with immigration enforcement, highlighting the complex nature of its operations [18]