30 Stocks That Should Double in 3 Years

15. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 64

Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the US, the UK, and internationally. It provides different platforms, which include Palantir Gotham, Palantir Foundry, Palantir Apollo, and Palantir Artificial Intelligence Platform/AIP.

On April 16, Morgan Stanley reiterated the stock as Equal Weight and lowered its price target to $90 from $95. The firm thinks that the company’s technical capabilities allow customers to realize early success on its GenAI initiatives. In 2024, Palantir’s US commercial sector grew by 54% year-over-year due to AIP and generated $702 million in revenue. In Q4 alone, the sector grew by 64%.

The US commercial sector booked $803 million in Total Contract Value in Q4, which indicated a 134% year-over-year improvement. The customer base for this segment also jumped by 73%. Palantir projects US Commercial revenue to surpass $1.079 billion in 2025 at a 54% growth rate. To drive this, Palantir Technologies Inc. (NASDAQ:PLTR) is investing in technical talent and product development to remain at the forefront of the AI revolution.

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.”