Palantir: World's Best AI Stock? Here's Why I'm Doubling My Position

Keypoints

• Rule of 40 Dominance: Palantir’s impressive Rule of 40 score of 64% indicates superior growth and profitability.

• Revenue Beats: Palantir exceeded expectations on both revenue and EPS in Q2, with US Commercial Total Contract Value up 152% year-over-year.

• Strategic Partnerships: New collaborations with GE Aerospace and Microsoft could further accelerate Palantir’s growth.

• Strong Buy: I’m doubling my position in Palantir, seeing a 5X potential from current price levels.

Summary

Palantir Technologies (NYSE: PLTR) is positioning itself as a leading player in the AI market, thanks to its superior products and rapid commercial growth. Following stellar Q2 earnings, which saw a 152% year-over-year increase in US Commercial Total Contract Value, I believe Palantir has discovered scalable and highly profitable AI applications that set it apart from the competition.

Palantir’s Rule of 40 score of 64% is a key metric that highlights the company’s effectiveness in monetizing AI at scale, surpassing other AI giants, including Microsoft and Alphabet. This performance, coupled with pivotal partnerships, like those with GE Aerospace and Microsoft, has solidified my confidence in Palantir's future.

Given these developments, I’ve decided to double my position in Palantir, seeing a significant opportunity for growth. I’m rating the stock a "STRONG BUY" and anticipate a 5X return from the current price levels.

Latest Insights

Palantir's AI approach focuses on "ontology," a method that reduces AI "hallucinations" and enhances data organization, giving the company a competitive edge in the market. This approach, combined with successful commercial applications, reinforces my belief in Palantir as the best AI investment.

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Disclaimer: This newsletter is for informational purposes only and should not be construed as financial advice. Please consult a financial advisor for personalized investment guidance. The information provided is based on current market analysis and may change rapidly. Always do your research before making any investment decisions.