Palantir Technologies(US:PLTR) The Motley Foolยท2025-09-25 09:10Core Viewpoint - Palantir Technologies is positioned to capitalize on the growing AI software market, which is expected to see significant growth over the next decade due to productivity gains from AI [1][6]. Company Overview - Palantir is a leading player in the AI software platforms market, which is projected to grow from an estimated $28 billion in 2023 to $153 billion by 2028, reflecting an annual growth rate of approximately 41% [6][7]. - The company generated $2.2 billion in revenue in 2023, capturing around 8% of the AI software platforms market [7][8]. Financial Performance - Palantir's stock price has surged by 390% over the past year, but it currently trades at a high valuation with a P/E ratio of 607 and a sales multiple of 134 [2][5]. - The total value of contracts booked by Palantir increased by 140% in Q2 2025, leading to a 65% year-over-year increase in remaining deal value to $7.1 billion [9][10]. Growth Potential - The company has achieved positive unit economics, with earnings per share increasing by 78% to $0.16 in Q2 2025, outpacing revenue growth of 48% [12]. - If Palantir continues to grow at a rate of 30% annually over the next decade, its earnings could reach $8.96 per share, potentially leading to a stock price of $448, representing a 146% increase from current levels [16][17]. Market Outlook - The AI software platforms market is expected to present a massive revenue opportunity worth $548 billion from 2029 to 2035, even if the annual growth rate slows to 20% [15]. - Palantir's ability to maintain growth above market rates could result in substantial earnings growth and further stock price appreciation [16][17].