Is PLTR a good stock to buy? We came across a bullish thesis on Palantir Technologies Inc. on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on PLTR. Palantir Technologies Inc.’s share was trading at $136.88 as of May 25th. PLTR’s trailing and forward P/E were 153.80 and 93.46 respectively according to Yahoo Finance.
Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States and internationally. PLTR reported a Q1 2026 that reinforced a rapidly strengthening bullish thesis, as results suggested that its Ontology is evolving from a coordination layer across fragmented enterprise systems into the core operating architecture of institutional work. The company delivered revenue growth of 85%, with U.S. revenue accelerating 104%, while adjusted operating margins reached 60% and net dollar retention surged to 150%, underscoring accelerating usage intensity.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
Management also raised FY26 guidance to 71% growth, signaling that demand is not only intact but compounding at infrastructure-like levels rather than typical software cycles. The core investment argument is that Palantir’s Ontology, which maps objects, relationships, permissions, workflows, and actions across enterprises, becomes increasingly valuable as AI agents proliferate, since falling inference costs expand agent activity and simultaneously increase governance and coordination requirements.
This dynamic, described as a Jevons-like effect, is driving exponential growth in governed machine-to-machine workflows, positioning Palantir as the essential control layer for enterprise AI rather than just another application vendor. Evidence of this shift was visible in deployment depth, including 97% employee usage at customer implementations and internal adoption cases where entire legacy systems were replaced by AIP-based workflows, effectively eliminating the need for traditional software layers.
Importantly, profitability quality also strengthened, with GAAP EPS exceeding adjusted EPS for the first time, GAAP net income reaching $871 million at a 53% margin, and declining stock-based compensation improving earnings durability. The investment debate is increasingly centered on whether Palantir can sustain its acceleration beyond $10 billion revenue scale, with historical precedents suggesting that companies maintaining 40%+ CAGR at that size are extremely rare.
The bullish case implies a potential multi-bagger outcome if the Ontology becomes the default enterprise AI operating layer, with the text highlighting a scenario where the stock could re-rate significantly higher, potentially doubling or more if full platform absorption across enterprises materializes.
Previously, we covered a bullish thesis on Palantir Technologies Inc. (PLTR) by Deep Value Returns in May 2025, which highlighted its high-growth AI software positioning, strong revenue expansion, and premium valuation justified by scale, profitability, and market leadership in data analytics. PLTR’s stock price has appreciated by approximately 25.73% since our coverage. Nikhs’s Substack shares a similar view but emphasizes Q1 2026 Ontology-led operating-layer shift, AI agent-driven demand acceleration, and potential multi-bagger re-rating if enterprise platform absorption scales broadly.
Palantir Technologies Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 89 hedge fund portfolios held PLTR at the end of the fourth quarter which was 81 in the previous quarter. While we acknowledge the risk and potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
