New York (Patrika English News): Palantir Technologies Inc. (NASDAQ: PLTR) continues to attract strong opinions on Wall Street. Despite investor concerns over valuation and customer concentration, some analysts see the AI software company as a long-term winner.
Derek Yan, Senior Investment Strategist at KraneShares, told CNBC that Palantir has the potential to become the “operating system for enterprises” in artificial intelligence (AI).
Analyst’s View on Palantir
Yan said recent selling pressure in Palantir stock was likely due to macroeconomic factors and profit-taking, not company fundamentals.
“Palantir is offering investors an opportunity to disrupt the enterprise world along with other agentic AI solutions. The adoption of AI is accelerating, the cost per token is declining, and the return on investment for enterprises using Palantir to automate workflows will only grow more attractive,” he explained.
He dismissed valuation fears, calling Palantir’s growth trajectory a “singular structural growth opportunity.”
Growth Momentum
Palantir has consistently defied traditional valuation models, trading at a high P/E ratio while continuing to post robust growth. In its most recent quarter, revenue jumped 48% year-on-year, and the company guided for full-year sales growth of about 45%.
Bears often highlight Palantir’s reliance on a limited number of clients. However, analysts argue that its Artificial Intelligence Platform (AIP) is becoming essential for enterprises looking to deploy AI at scale, making it harder for customers to switch.
Expanding Market Opportunity
The AI software market is set for massive expansion. Hyperscaler capital expenditure (capex) is projected to reach $1.15 trillion from 2025 to 2027, more than double the $477 billion spent between 2022 and 2024. Palantir’s positioning could allow it to capture a meaningful share of this growth.
Investor Backing
Institutional investors are also bullish. In its Q2 2025 investor letter, Carillon Eagle Mid Cap Growth Fund noted Palantir’s success with both government and commercial contracts, citing new deals with the U.S. military, NATO, and U.S. government agencies, alongside growing traction in the corporate market through AI bootcamp demonstrations.
