Palantir Technologies Inc. stock has surged 142.9% this year, largely driven by optimism around AI and Machine Learning initiatives. However, the stock is currently overpriced. AI could contribute up to $15.7 trillion to the global economy by 2030, and companies that discuss AI initiatives in earnings calls are 40% more likely to see share prices increase. Despite optimism around AI, Palantir's shares will require years of significant revenue growth and profitability increases before they look close to fairly valued, leading to a "sell" rating for the company.
Palantir Technologies: Massively Expensive Even With AI Potential