Palantir Technologies has officially joined the ranks of the top 10 most valuable U.S. tech companies, marking a significant milestone in its growth trajectory.
The data analytics and artificial intelligence firm saw its stock surge 8%, pushing its market valuation to $281 billion, surpassing Salesforce.
Founded in 2003 by Peter Thiel and CEO Alex Karp, Palantir has long been known for its government contracts and defense-related software solutions.
Its recent success is largely attributed to a booming government business, which grew 45% last quarter, including a $178 million contract with the U.S. Army.
Despite its impressive market cap, Palantir remains a relatively small player in terms of revenue compared to its peers. Investors are paying a premium for its stock, which currently trades at 520 times trailing earnings, far exceeding industry averages.
Analysts have raised concerns about its valuation, questioning whether its rapid rise is sustainable in the long term.
Palantir’s ascent reflects the growing influence of AI-driven data analytics in both commercial and governmental sectors.
As it continues to expand, the company faces the challenge of proving its financial fundamentals can support its lofty valuation.