-
Artificial Intelligence (AI) has again defined the Palantir company.
-
In the past two years, the appreciation of the company has risen more than 17-time.
-
Although AI remains a huge opportunity for Palantir, another player in the Software -Rijk can have more advantage over the next five years.
The allure of artificial intelligence (AI) has been dominating the stock market for more than two years. AI is not only an interest in investors – it has become a bit of an obsession. And a share that investors simply cannot get enough of is a specialist in data analysis Palantir Technologies (Nasdaq: PLTR).
From this letter (April 30), Palantir Stock has a share price of approximately $ 117 only a stone’s throw of his 52 weeks high. That is quite an achievement considering the S&P 500 And Nasdaq Composite have struggled enormously in the course of 2025, thanks to a lagging technological sector.
Where do you have to invest $ 1,000? Our analyst team has just revealed what they believe it is the 10 best shares To buy now. Go on “
In the following section I will describe the epic rise of Palantir and the rising valuation during the AI revolution. What is even more important, let’s investigate why another emerging software company could be the better purchase, because it can darken the size of Palantir in the coming years.
Palantir was founded more than 20 years ago. The majority of its history focused on the public sector – closely with the US Army and its allies in the defense world. Given the lumpy nature of government contracts, Wall Street was skeptical about the growth potential of Palantir when the company became public in 2020. Some skeptics considered Palantir as an advisory agent for the government and not so much as a high -flying software company.
This story started to change exactly two years ago. In April 2023, Palantir released his fourth large Enterprise tool, called the Artificial Intelligence Platform (AIP). In the table below I summarized some important performance indicators around the Palantir company before and after the release of AIP.
|
Category |
Q1 2022 (prior to AIP) |
Q4 2024 (last published financial data) |
|---|---|---|
|
Government customers |
93 |
140 |
|
Commercial customers |
184 |
571 |
|
Total income |
$ 446 million |
$ 827 million |
|
Netto -Inkomas |
($ 101 million) |
$ 79 million |
|
Custom Free Cash Flow |
$ 29.8 million |
$ 517.4 million |
Data source: Palantir.
The growth speaks for itself. AIP has been a transforming piece of infrastructure for Palantir, so that the company can quickly penetrate the private sector, speed up turnover and broaden profit margins. Although Palantir earns a lot of credit, investors may become a bit too enthusiastic. In just two years, the market capitalization of the company has been bleached more than 17 times. To add a perspective layer here, Palantir currently acts 100 times the trail-12-months.
PLTR Market CAP data by YCHARTS.
Smart investors are currently wondering when Palantir will hit his ceiling. Although AI should remain a long -term wind for the company, there is a time when the valuation multiples begin to normalize. In the coming five years, expectations are probably higher and higher with each passing winning report. My premonition is that the triple figures of Palantir shares can be in the rear-view mirror for the time being. By 2030 it would not surprise me if the valuation of Palantir is largely unchanged compared to where it is today.
The software company that I think has more potential than Palantir in the next five years is CyberSecurity Firm Crowdstrike (Nasdaq: CRWD). In the world of investing, Crowdstrike has become somewhat polarizing in the past year due to a high -profile security disturbance with the company’s software.
The biggest wind wind that I see for Crowdstrike in the coming years is the unique positioning of the company at the intersection of two large and growing, total addressable markets (TAMS): AI and cyber security. According to Statista, the TAM is expected to reach $ 134 billion for AI in cyber security by 2030 – an increase of more than four times compared to the size at the end of 2024.
While the security disturbance led a lot in the way of negative PR last summer, Crowdstrike dragged along and performed quite well in the past quarters. Despite any observed reputation damage, the annual recurring income of the company (ARR) continues to grow with an impressive clip and the ability to generate a consistent free cash flow does not seem to be in danger.
CRWD Revenue (TTM) data by Ycharts.
Just like Palantir, Crowdstrike deals on a premium. Crowdstrike actually acts the highest p/s -ratio when they are benchmarked against a large Peer group of leading cyber security companies.
CRWD PS -Ratio data by Ycharts.
In a sense, however, I think that this premium suggests that growthgemers look beyond the hiccup of the company last year and bought the long -term story about AI and cyber security. To one step further, despite the premium of Crowdstrike, the current P/S -Meerderer is actually slightly lower than where it was last year prior to the security disturbance – as illustrated above around the period of July 2024.
In the coming years I see Crowdstrike as a compelling buy-and-hold opportunity and I think the growth potential of the company is in the early chapters. For these reasons, I think Crowdstrike has more in the corner compared to Palantir, and I see the company being appreciated with a higher company at the next decade.
Consider this: Before you buy shares in Crowdstrike:
The Motley Fool Stock Advisor Analyst team has just identified what they believe are the 10 best shares For investors to buy now … and Crowdstrike was not one of them. The 10 shares that made the cut can produce sample returns in the coming years.
Consider when Netflix made this list on December 17, 2004 … If you have invested $ 1,000 at the time of our recommendation, You would have $ 623,685!** Or when Nvidia made this list on April 15, 2005 … If you have invested $ 1,000 at the time of our recommendation, You would have $ 701,781!**
Now it is worth mentioning InventorThe total average return is 906%-A market-changing outperformance compared to 164% For the S&P 500. Don’t miss the latest top 10 list, available if you become a member Inventor.
See the 10 shares »
*Stock Advisor Return on April 28, 2025
Adam Spatacco has positions in Palantir Technologies. De Motley Fool has positions and recommends Cloudflare, Crowdstrike, Fortinet, Okta, Palantir Technologies and Zscaler. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.
Prediction: This super software growth stock will be worth more than Palantir was originally published by The Motley Fool in 2030
