Palantir's AIP-Led Growth Places It Ahead in the AI Race

Palantir Technologies PLTR continues to stand out as one of the most compelling plays in the artificial intelligence sector, thanks to the explosive adoption of its Artificial Intelligence Platform (AIP). With enterprises seeking immediate, operational-ready AI tools, PLTR has positioned itself as a leader by delivering turnkey solutions that integrate seamlessly into existing workflows. This capability is a key differentiator, enabling organizations to deploy advanced AI systems without lengthy development cycles, a feature that fuels rapid adoption and customer loyalty.

A major driver of Palantir’s momentum is its expanding U.S. commercial business. In the most recent quarter, domestic commercial revenues surged at a staggering pace, reflecting the accelerating embrace of AI-driven decision-making among corporations. Beyond revenue growth, the increasing prevalence of multi-year, large-scale contracts underscores PLTR’s ability to secure clients for the long term. This blend of near-term revenue acceleration and long-term contract durability provides investors with greater visibility into the company’s growth trajectory.

With AI adoption still in the early innings across industries, Palantir is well-positioned to capture incremental demand as companies move beyond experimentation into scaled deployment.

For investors seeking outsized AI-driven upside, Palantir presents one of the clearest opportunities in the market. The combination of accelerating revenues, sticky customer relationships, and the unique value of AIP makes PLTR a name that could continue to deliver above-market returns. In the near term, this software-led momentum places Palantir firmly ahead of peers as the company cements its leadership role in enterprise AI.

PLTR’s Price Performance, Estimates

The stock has surged a whopping 109% year to date, significantly outperforming the industry’s 19% rally.

From a valuation standpoint, PLTR trades at a forward price-to-sales ratio of 73.93, well above the industry’s 5.65. It carries a Value Score of F.

The Zacks Consensus Estimate for PLTR’s 2025 earnings has increased 12% over the past 30 days.

PLTR stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stable Defense Alternatives to Palantir

As PLTR’s valuation moves higher, Lockheed Martin LMT and RTX Corporation RTX offer more grounded defense exposure. Lockheed Martin, with its massive defense contracts, provides steady cash flow and less volatility than PLTR. Its forward price-to-sales ratio is just 1.4X. Lockheed Martin continues to benefit from global rearmament.

Similarly, RTX shines through missile systems. RTX’s defense backlog, like LMT's, underscores its stability. Its forward price-to-sales ratio is 2.42X.

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This article originally published on Zacks Investment Research (zacks.com).

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