Analyst Negates Investor Worries About Palantir (PLTR), Says Company Can Become 'Operating System' of Enterprise AI

We recently published 10 Buzzing AI Stocks to Watch in September. Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks to watch in September.

Derek Yan, KraneShares Senior Investment Strategist, said in a recent program on CNBC that Palantir Technologies Inc. (NASDAQ:PLTR) has the potential to become the “operating system for enterprises” in the world of AI. He also explained the key reasons investors usually worry about Palantir and mentioned why he’s bullish on the stock:

“Palantir is offering the similar opportunity here for investors to really disrupt the enterprise world along with many other agentic AI solutions. So the recent like selling I would think that’s largely driven by macro factors and there’s some profit taking. We own Palantir over a year ago and now it’s over $150. So many other investors they’re concerned about valuation and worry about like potential risk off triggered by the fat policies that’s coming. Well I believe this is a singular grow structural growth opportunity right. So AI agent option is accelerating. The cost per token will keep declining. As a result, the return on investment for enterprises to deploy AI and use Palantir service to automate their workflow will become increasingly attractive.”

Palantir has proved its skeptics wrong and so far defied conventional valuation approaches, enjoying an insanely high P/E ratio. The company is consistently growing. In the recently reported quarter, its revenue rose 48% year over year. The company’s full-year outlook points to sales growth of about 45%. While Palantir bears have highlighted its high dependence on just a few customers for most of its revenue, all signs indicate that the company’s growth won’t stop anytime soon. Why? Because Palantir’s Artificial Intelligence Platform (AIP) is becoming indispensable for companies to deploy and operate AI systems and infrastructure. The AI software boom is just getting started, paving the way for more growth for companies like Palantir. Hyperscaler capex is expected to reach $1.15T from 2025 through 2027, more than double the $477B spent from 2022 through 2024.

Carillon Eagle Mid Cap Growth Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its second quarter 2025 investor letter:

“Palantir Technologies Inc. (NASDAQ:PLTR), a leader in artificial intelligence (AI) software and services to governmental organizations, reported robust results and provided a strong outlook, as both the U.S. military and NATO purchased large contracts. Palantir also has had success penetrating non-military agencies of the U.S. government, as well as the commercial (corporate) side of the market with AI use cases that deliver quantifiable added value through its bootcamp product demonstrations.”

While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.