With a market cap of $201.3 billion, the Denver, Colorado-based Palantir Technologies Inc. (PLTR) builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally.

Companies worth $200 billion or more are generally described as “mega-cap stocks,” and PLTR perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the software infrastructure industry. By leveraging its deep expertise in AI and data integration, Palantir is not only catering to the growing demand for AI-driven solutions but is also playing a pivotal role in the development and optimization of LLMs. This strong positioning provides significant growth opportunities as AI adoption accelerates across various sectors, including defense, healthcare, finance, and beyond.

However, PLTR has faced struggles and is currently trading 32.7% below its 52-week high of $125.41, recorded on Feb. 19. On the positive side, PLTR stock surged 6.7% over the past three months, surpassing the broader Nasdaq Composite’s ($NASX) fall of 12.3% over the same time frame.

Shares of PLTR have surged 129.1% over the past 52 weeks, substantially outperforming $NASX's 4.5% return over the last year. Moreover, over the past six months, PLTR shares have grown 266.8%, outperforming $NASX’s 5.6% rise. 

PLTR has been trading above its 200-day moving average for the past year. However, the stock has dropped below its 50-day moving average since March end.[KS1] 

PLTR shares surged 1.5% following its Q4 earnings release on Feb. 3. The company reported a whopping 52% growth in its U.S. revenue and a total of 36% revenue growth, which amounted to $828 million. Additionally, the company also reported an impressive 43% increase in its customer count for the quarter. 

PLTR expects its revenue and adjusted income from operations for Q1 fiscal 2025 to be in the range of $858 to $826 million and $354 and $358 million, respectively.

Its rival, Microsoft Corporation (MSFT), has lagged behind, with its shares tanking 12.3% over the past six months and 10.8% over the past 52 weeks.

Among the 19 analysts covering the PLTR stock, the consensus rating is a “Hold.” The stock is currently standing above its mean price target of $84.22.