Investing in Palantir Technologies Stock: Key Factors to Consider

3 Reasons to Buy Palantir Technologies Stock Like There's No Tomorrow

The stock has been on fire thanks to increasing demand for artificial intelligence (AI). There's probably much more where that came from. Artificial intelligence (AI) has been around since the 1950s, but recent developments have taken the technology to the next level. The potential for productivity increases caught many by surprise, and has businesses racing to get their share. At the same time, investors have become entranced with the potential for profit, scooping up shares of any company specializing in AI.

1. Palantir has a solid foundation and robust growth

Palantir long ago established itself as the go-to for U.S. government agencies in search of AI expertise. Its algorithms were originally designed to ferret out terrorists by finding patterns hidden among intelligence agency and law enforcement databases. Beyond those applications, however, Palantir has provided AI services to a diverse group of government bodies, including the Securities and Exchange Commission (SEC), Animal and Plant Health Inspection Service, Internal Revenue Service (IRS), Department of Veterans Affairs, and the Federal Aviation Administration (AFF), among many others.

2. Palantir's government business just got a shot of adrenaline

As the slower growing of Palantir's business segments, its government contracts have been limited by Palantir's designation as a "software" provider. However, a recent contract win suggests the company may be moving beyond its humble roots.

3. The generative AI wildcard

Beyond Palantir's existing business opportunities is the wildcard represented by the vast and accelerating adoption of generative AI. Management saw the writing on the wall and quickly pivoted to meet the growing demand. Palantir's decades of experience in the field resulted in the Artificial Intelligence Platform (AIP), the company's home-grown generative AI offering.