Was Jim Cramer Right About Palantir (PLTR) Stock?

Back in 2024, on May 14, Mad Money’s Jim Cramer expressed skepticism regarding Palantir Technologies Inc. (NASDAQ:PLTR). A caller in that older episode mentioned having a substantial position in Palantir Technologies Inc. (NASDAQ:PLTR), and asked for Cramer’s opinion. Cramer criticized the company’s inconsistent quarters at the time, saying:

“Okay, here’s the problem with Palantir. The quarters are uneven. And Alex Karp doesn’t want to come on the show. And I don’t really understand how I can possibly make a judgment unless he comes on.”

Cramer’s skepticism was completely off the mark as Palantir has gained 507.18% over the past year, as of May 15.

Palantir Technologies Inc. (NASDAQ:PLTR) builds AI-powered data analytics platforms used by governments, defense agencies, and large enterprises for decision-making and operations. What’s surprising is that Cramer remains unconvinced, even after the company’s parabolic move. Here’s what he said on the 2^nd of May 2025:

“The ultimate meme stock for the moment is this company called Palantir, which reports. It’s a cybersecurity company. Now this one’s moved up by persistent retail buying that starts around 4:00 AM every day when they literally walk it up a couple of points before the bell and then continue to keep it at that level until the close.

It’s possible the story’s not as big as the hype or the hope, but we know that Palantir’s got a constituency of retail buyers that just won’t quit. I don’t know if they’ll quit when they see the number.”

While we acknowledge the potential of PLTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.