Where Will Palantir Technologies Stock Be in 10 Years?

Core Viewpoint - Palantir Technologies has experienced significant stock price fluctuations, with a remarkable 714% increase since its public debut in September 2020, primarily driven by the launch of its AI software platform in April 2023, but has recently faced a 38% decline from its 52-week high due to broader market conditions [1][2][3]. Group 1: Stock Performance - Palantir's stock surged at the beginning of 2025 but has since dropped significantly, reflecting broader market negativity and investor concerns about an economic slowdown [2][3]. - The Nasdaq Composite index has also seen a decline of over 20% in 2025, contributing to profit-taking among investors in high-performing stocks like Palantir [3]. Group 2: Growth Catalysts - The demand for AI software is booming, with Palantir's growth trajectory improving since the launch of its Artificial Intelligence Platform (AIP), which has attracted a growing customer base and increased spending from existing clients [5][6]. - In Q4 2024, Palantir reported a 43% year-over-year increase in customer count, with a notable 25% increase in deals worth $1 million or more and a 57$5 million or more [6]. - The AI software market is projected to generate $5.2 trillion in annual revenue by 2035, indicating a substantial growth opportunity for Palantir [7]. Group 3: Financial Metrics - Palantir's total contract value increased by 56$1.8 billion, while the remaining deal value (RDV) grew by 40% to $5.4 billion [8][9]. - The company is positioned for stronger future growth due to the addition of new customers and increased spending from existing customers, leading to improved unit economics [10]. Group 4: Valuation Concerns - Palantir's current valuation is considered expensive, trading at 66 times sales and 145 times forward earnings, which may lead to further stock price declines amid negative market sentiment [12]. - Despite the high valuation, if the stock becomes available at a lower price, it could represent a solid investment opportunity given the large addressable market in AI software [13]. Group 5: Future Growth Potential - Palantir is expected to grow at a faster rate than the overall AI software market, which is forecasted to have a compound annual growth rate of nearly 31% through 2035, with Palantir's revenue growth at 36% [14]. - The productivity gains delivered by AIP are likely to sustain healthy growth levels for Palantir over the next decade, making it a stock to watch for potential accumulation [15].