Palantir Technologies (PLTR) Surged Due to Revenue Expansion

Fred Alger Management, an investment management company, released its “Alger Mid Cap Focus Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets regained their strength in the second quarter of 2025. Class A shares of the fund outperformed the Russell Midcap Growth Index during the quarter. The Industrials and Energy sectors contributed to the relative performance of the strategy in the quarter, while Information Technology and Consumer Discretionary sectors detracted.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Alger Mid Cap Focus Fund highlighted stocks such as Palantir Technologies Inc. (NASDAQ:PLTR). Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms for the intelligence community.  The one-month return of Palantir Technologies Inc. (NASDAQ:PLTR) was 7.20%, and its shares gained 480.66% of their value over the last 52 weeks. On July 23, 2025, Palantir Technologies Inc. (NASDAQ:PLTR) stock closed at $154.63 per share, with a market capitalization of $364.913 billion.

Alger Mid Cap Focus Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its second quarter 2025 investor letter:

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of data analytics software designed to integrate and analyze large, complex datasets for government agencies and commercial enterprises globally. Its platforms, such as Gotham and Foundry, enable users to rapidly visualize and interpret critical data to inform high-impact decisions across defense, intelligence, and corporate sectors. The company has benefitted from its ability to consistently expand revenues in both its Government and Commercial segments, driven by growing adoption of AI solutions and increasing government spending on defense and intelligence capabilities. During the quarter, Palantir shares rose significantly supported by strong fiscal first-quarter results featuring 39% year over-year revenue growth, driven by robust increases in U.S. commercial and government contracts. Management also raised full-year revenue guidance, citing increased demand for AI-driven solutions and the positive impact of rising defense expenditures.

Palantir Technologies Inc. (PLTR): I Don't Own It, But I Recommend It, Says Jim Cramer

A software engineer manipulating a vast network of code on virtual monitors.

Palantir Technologies Inc. (NASDAQ:PLTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 77 hedge fund portfolios held Palantir Technologies Inc. (NASDAQ:PLTR) at the end of the first quarter, which was 64 in the previous quarter. Palantir Technologies Inc.’s (NASDAQ:PLTR) first quarter revenue grew 39% year-over-year and 7% sequentially to $884 million. While we acknowledge the risk and potential of Palantir Technologies Inc. (NASDAQ: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 Palantir Technologies Inc. (NASDAQ:PLTR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Palantir Technologies Inc. (NASDAQ:PLTR) and shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.