Is Palantir Still a Buy After the Recent Surge?

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•  03 Jun 2025
 

Palantir Technologies $PLTR has been dominating headlines lately, and for good reason. The AI software powerhouse recently crossed above the average analyst 12-month price target of $84.53, trading as high as $134.49. That’s a massive jump that has left many investors wondering is Palantir still a buy after the recent surge, or has it already peaked?

Market chatter intensified after the stock appreciated 22% year to date and was featured in a slew of reports comparing its potential to AI giants like NVIDIA. Some analysts have gone so far as to ask: Can Palantir outperform NVIDIA in the AI race?

PLTR has not only been outperforming the software index in 2025, but it's also being added to premier watchlists like the IBD 50 and Big Cap 20. A recent report from Zacks even grouped Palantir alongside tech titans like Microsoft and Amazon, showcasing how far the company has come in the eyes of Wall Street.

Yet, not everything is smooth sailing. Palantir's massive valuation hovering near a $317 billion market cap has prompted some to argue that “valuation suddenly matters.” Meanwhile, the broader market has shown signs of volatility following Trump’s proposed tariffs and ongoing inflation worries, dragging down high-flyers like Palantir and Nvidia during certain sessions.

Still, sentiment remains bullish. Most analyst notes and financial media outlets, including Investor’s Business Daily, continue to give the stock a “Buy” rating. Palantir has consistently shown strong momentum in the AI space, bolstered by contracts with both government and commercial clients.

Here’s a snapshot of the fundamentals: PE ratio stands at a lofty 588.19 with EPS of $0.23. The stock’s 52-week range stretches from a low of $21.04 to a high of $134.99. Average volume is about 98 million shares, and the stock is trading near its highs with strong volume support.

So, is Palantir still a buy after the recent surge? Given its positioning in the AI sector and strong institutional interest, the rally might not be over. For investors willing to embrace some volatility, PLTR remains a compelling name to watch.

For long-term investors focused on the growth potential of artificial intelligence, Palantir stock offers a rare mix of real-world utility and upside momentum. Unlike speculative AI plays, Palantir has secured multi-year contracts with the U.S. government and major enterprise clients, giving it stable revenue streams even during market pullbacks. With Wall Street increasingly focused on AI leaders, PLTR stands out thanks to its blend of data integration, predictive analytics, and military-grade security.

If you're asking "Is Palantir still a buy after the recent surge?" consider this: PLTR isn’t just riding the AI wave, it's building the infrastructure that powers it. Whether you’re looking for the next breakout tech stock or a long-term hold in the AI revolution, Palantir deserves a place on your radar.