Is Palantir Stock Overvalued or Dirt Cheap? The Answer Might Blow Your Mind.
The Motley Fool
by newsfeedback@fool.com (Adam Spatacco)February 24, 2026
AI-Generated Deep Dive Summary
Is Palantir Technologies (NASDAQ: PLTR) stock overvalued or undervalued? This question has sparked intense debate among investors, especially as the company has experienced a staggering 1,640% growth since the onset of the AI revolution. The rise of Palantir’s stock is nothing short of remarkable—investing just $1,000 in PLTR around the time OpenAI launched ChatGPT would have grown to nearly $17,400 by today. While this kind of return is extraordinary, it has also led some investors to question whether the stock is now overpriced.
Palantir’s success can be attributed to its position as a leader in data analytics and AI-driven decision-making. The company provides critical tools for industries like defense, healthcare, and finance, where data analysis is essential. Its technology enables organizations to process vast amounts of information quickly, giving it a unique edge in the AI space. Despite concerns about high valuations, Palantir’s ability to secure major government contracts and expand its customer base continues to drive growth.
However, not everyone is convinced. Critics argue that while Palantir’s revenue has grown significantly, its stock price may no longer reflect realistic future earnings. With competition heating up from tech giants like Microsoft and Google, some investors worry about the sustainability of Palantir’s dominance. Others point out that while the company’s growth trajectory is impressive, it still faces challenges in scaling its operations globally.
For readers interested in finance and investing, this debate matters because Palantir represents a key player in the AI revolution—a sector with immense potential but also significant risks. Whether or not PLTR stock remains a worthwhile investment hinges on balancing its
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Originally published on The Motley Fool on 2/24/2026