Palantir Technologies Inc. (PLTR): A Bull Case Theory

We came across a bullish thesis on Palantir Technologies Inc.  on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on PLTR. Palantir Technologies Inc. 's share was trading at $156.72 as of August 27^th. PLTR’s trailing and forward P/E were 522.40 and 243.90 respectively according to Yahoo Finance.

Palantir (PLTR) delivered another quarter of exceptional execution, highlighted by accelerating revenue growth, surging U.S. commercial performance nearly 100% year-over-year, and record total contract value (TCV), reflecting strong demand for its AI platform. The company, founded in 2003, specializes in big data analytics and AI-driven decision-making, serving both government and commercial clients with products including Gotham, Foundry, Apollo, and its Artificial Intelligence Platform (AIP). Palantir’s competitive advantage stems from high switching costs, extensive proprietary intellectual property with over 3,400 patents, and deep integration into client workflows, creating substantial barriers to competition.

Its total addressable market has expanded from $119 billion at IPO to $1.2–1.4 trillion today, driven by AI adoption, enterprise digital transformation, and the shift to cloud-based AI services. Palantir’s economic moat is reinforced by entrenched government contracts, strong brand credibility, and growing indirect network effects via AIP deployments. Revenue growth accelerated to 48% YoY, with U.S. commercial revenue up 93%, and government revenue growing 49% YoY, supported by landmark contracts including a $10 billion U.S. Army enterprise deal. The AIP platform and Ontology framework are driving faster time-to-value and AI operationalization across sectors, while Foundry and Gotham continue to expand enterprise and government impact.

Key performance indicators, including net new ARR of $481 million, 128% retention, a 5.6-month CAC payback, and an R&D Index of 3.7, demonstrate operational efficiency and growth scalability. Recognition from Forrester, Gartner, IDC, and Dresner Advisory Services confirms Palantir’s leadership in enterprise AI. While international commercial growth lags and valuation remains elevated, Palantir’s accelerating execution, strong customer traction, and record contract wins underscore a unique position in the AI analytics market, though high expectations temper near-term upside.

Previously we covered a bullish thesis on Palantir Technologies Inc. (PLTR) by Deep Value Returns in May 2025, highlighting strong revenue growth, market leadership in AI, and robust government and commercial contracts. The stock has appreciated approximately 44% since coverage as execution remained strong. Sergey shares a similar perspective but emphasizes the latest quarterly results, surging U.S. commercial growth, and record contract wins.

Palantir Technologies Inc.  is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held PLTR at the end of the first quarter which was 0 in the previous quarter. While we acknowledge the risk and potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.