13 Best Technology Stocks to Buy for Long-Term Investment

11. Palantir Technologies Inc. (NASDAQ:PLTR)

3-Year Revenue CAGR: 23.67%

Number of Hedge Fund Holders: 64

Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms for the intelligence community. The company assists in counterterrorism investigations and operations through different platforms, such as Palantir Gotham, Palantir Foundry, Palantir Apollo, and Palantir Artificial Intelligence Platform/AIP. It also helps US commercial customers with data analytics.

In Q1 2025, Palantir’s US commercial revenue surged by 71% year-over-year and surpassed a $1 billion annual revenue run rate. This segment now constitutes 71% of the company’s overall business. The growth in the US commercial sector is fueled by the demand for Palantir’s Artificial Intelligence Platform/AIP. The company closed $810 million in US commercial TCV/Total Contract Value, which marked a 239% increase.

Palantir Technologies Inc. (NASDAQ:PLTR) also doubled the number of deals worth $1 million or more compared to the same period last year, which indicates larger customer engagements. BofA also raised the price target on Palantir to $150 from $125 while maintaining a Buy rating on May 12. According to the analysts at BofA,  Palantir’s value is creating ‘outcome-focused bespoke AI-enabled products.’

Alger Mid Cap Focus Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q4 2024 investor letter:

“Palantir Technologies Inc. (NASDAQ:PLTR) builds advanced platforms for data integration, management, and security, enabling interactive, AI-assisted analysis for its users. Its core offerings include Palantir Gotham, designed for government clients, and Palantir Foundry, tailored for commercial customers. Originally focused on U.S. intelligence agencies, Palantir has expanded into defense contracts with western governments and entered the commercial market in 2016. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal third quarter operating results, along with management raising its full year 2024 revenue guidance. Management noted that the recent launch of its AI platform (AIP), which leverages generative AI to optimize business operations, has driven significant growth and investor interest. Additionally, we believe Palantir could be a key partner for the U.S. government’s new Department of Government Efficiency (DOGE), as its AI-driven platforms are ideally suited to help identify inefficiencies, allocate resources effectively, and achieve cost reductions.”