Palantir Technologies Inc. (PLTR): A Bull Case Theory 

We came across a bullish thesis on Palantir Technologies Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on PLTR. Palantir Technologies Inc.’s share was trading at $167.49 as of December 1st. PLTR’s trailing and forward P/E were 388.38 and 169.49 respectively according to Yahoo Finance.

Jim Cramer Says He's "Sure" Palantir (PLTR) Will Get BusinessPalantir Technologies has transformed from a defense-focused analytics provider into a dual-engine platform company serving both government and commercial markets. Its Gotham platform continues to drive national security workloads, while Foundry and the Artificial Intelligence Platform (AIP) fuel enterprise adoption. AIP bootcamps accelerate time-to-value, contributing to a 93% year-over-year increase in U.S. commercial revenue in Q2 2025 and driving remaining deal value to $2.79 billion, up 222% YoY.

Contract momentum underpins the company’s growth thesis, highlighted by a $385.4 million award from the Department of Veterans Affairs for the National Patient Care Database supporting over five million active users, alongside significant expansions within the Army and commercial partnerships like OneMedNet. While Palantir trades at a forward P/E exceeding 200, reflecting high execution expectations, its government credibility provides a stable foundation, with the pace of commercialization serving as the primary variable for investors.

The company’s platform breadth—spanning orchestration, secure data integration, and agentic decision support—creates a defensible moat, positioning it for long-term growth. Investor attention will remain focused on net new annual contract value, margin sustainability, and evidence that current valuations are justified by eventual cash generation.

Overall, Palantir presents a compelling opportunity, balancing robust government engagements with accelerating commercial adoption, though near-term returns are contingent on continued execution and the successful translation of high growth expectations into durable cash flow. The combination of strategic government contracts, enterprise expansion, and a scalable AI platform underscores the potential for significant long-term value creation, making it a high-conviction story for investors who can tolerate elevated multiples.

Previously we covered a bullish thesis on Palantir Technologies Inc. (PLTR) by Deep Value Returns in May 2025, which highlighted its scale, rapid growth, government and commercial contracts, and leadership in AI and data analytics. The stock has appreciated approximately 53.85% since then as the thesis played out. Sergey shares a similar bullish perspective but emphasizes Palantir’s dual-engine platform strategy, contract momentum, and commercial expansion.

Palantir Technologies Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 78 hedge fund portfolios held PLTR at the end of the second quarter which was 77 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.

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Disclosure: None.