Where will Palantir Technologies stock be in stock in 10 years?
Palantir Technologies(NASDAQ: PLTR) Published in September 2020, the stocks in the software platform and data analytics provider jumped to an impressive 714% at the time of this writing, but it is worth noting that almost all of the stock’s profits have arrived in the past few years since the launch of the AI (AI) software platform in April 2023.
However, Palantir stocks have dropped significantly over the past month or so. When 2025 began, inventory surged significantly, but fell 38% from its 52-week high on February 18th. Palantir’s recent slides are due to factors other than company management. The broader stock market negativity caused by the tariff-induced world trade war has led investors to press the panic button.
Technology Ladan Nasdaq Composite The index fell by more than 20% in 2025 (at the time of this writing). The slowdown in the economy and the fear of a potential recession have led investors to book profits from stocks that have produced outstanding returns over the past few years, and Palantir is one of them.
However, the recent sharp pullbacks of software specialists could entice stock purchases, taking into account the potential benefits that could potentially offer growth-oriented investors over the next decade. Let’s take a closer look at the catalysts that should serve as a tailwind for Palantir over the next decade.
Palantir’s growth trajectory Improvements have begun This is the first time since the launch of the Artificial Intelligence Platform (AIP) several years ago. The company has launched AIP for both commercial and government customers with the aim of helping them build and deploy AI applications tailored to their operations. The platform has gained enormous traction thanks to the increased productivity achieved by AIP customers, leading to significant growth in Palantir’s customer base and spending by existing customers.
Specifically, Palantir recorded a 43% increase in customer numbers in the fourth quarter of 2024 compared to the previous year. Better yet, the number of customers signing large deals with the company has increased. For example, the number of transactions Palantir signed in the last quarter of over $1 million has increased by 25% from the same period last year. Meanwhile, the increase in transactions of over $5 million has increased by 57% year-on-year.
These figures reveal that Palantir is far ahead of the rapid adoption of AI software, which is expected to grow at an incredible pace over the next decade. A market research provider’s roots analysis predicts the AI software market to earn $5.2 trillion in annual revenues in 2035, suggesting that Palantir is hampering the surface of large end market opportunities that will help maintain impressive levels of growth over the next decade.
It is worth noting that Palantir is ranked as the top vendor of AI software platforms by several third-party market research agencies, such as IDC. Foresterand others. This explains why customers are flocking to Palantir’s AIP, as the platform can provide increased costs and efficiency. The company reported that its total contract value for the fourth quarter of 2024 increased by 56% to $18 billion.
This has made a big jump into Palantir’s revenue pipeline. The company won $5.4 billion in the fourth quarter, up 40% year-on-year in the remaining trading value (RDV). The metric refers to the total remaining value of a contract that Palantir must meet at the end of the period. Palantir’s RDV growth was higher than the company’s 36% revenue growth recorded in the quarter.
So Palantir is standing up for much stronger growth in the future. The company needs to benefit from more customers and the increased spending provided by existing customers. These factors contribute to Palantir’s positive unit economics, allowing them to record much faster growth in revenue compared to revenue.
Unit economics is a measure of a company’s profitability and helps you understand how much money you are making from each customer. Given that Palantir has been able to sign expanded transactions with existing customers, the potential trends that may continue in the future thanks to the proliferation of AI could continue to improve its margin profile.
The following chart clearly shows that Palantir’s margins have improved significantly over the past few years, and there is room for further growth in this respect.
The expensive valuation of Palantir is the main reason why investors are booking profits on this stock. Ultimately, stocks trading at premium valuations are considered to be riskier when compared to value stocks, which is why they are more risky during the sale. The bad news is that Palantir is still trading 66x sales and 145 times Foresightful revenue Despite a major recent pullback.
Therefore, it is not surprising to see this AI stock pull back even more thanks to the negative sentiments currently affecting the global stock market. However, if Palantir stock continues to slide further and become available at a much cheaper valuation, it is worth buying given the enormous addressable opportunities available in the AI software market over the next decade.
What’s noteworthy is that Palantir has begun to grow at a faster pace than the rates the global AI software market is expected to grow over the next decade. The roots analysis predicts the combined annual growth rate of nearly 31% of the Generated AI Software market through 2035. Palantir’s 36% revenue growth rate was even better with improved RPO.
In light of the increased productivity that AIP is offering to its customers, Palantir could potentially maintain healthy levels of growth over the next decade. Therefore, we recommend that you look out for Palantir stocks and consider accumulating more as it could become a solid investment over the next decade.
Consider this before purchasing stocks at Palantir Technologies.
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