Palantir Technologies (PLTR) debuted, without much fanfare, on the New York Stock Exchange on the final day of September 2020. The timing of the debut was unusual.
Covid did much damage, both on Wall Street and Main Street. With the markets still reeling, Palantir, a covert military business that helps governments harvest and analyze data, came with a different market proposition.
We have chosen sides. Our software is used by the United States and its allies, Palantir said.
Immediately, Palantir appeared unique in the investing world. As time went on, it became, in effect, a part of the larger U.S. security establishment. As a result, in a weary investment world, Palantir was still noteworthy, and even in its earliest days, people took notice.
However, Peter Thiel, its most renowned supporter, was a controversial figure. Alex Karp, the company’s CEO, was not sorry for being obstinate. And analysts and investors were skeptical as PLTR promised the moon.
Wall Street was bored. The price of shares started at $10. Some investors viewed Palantir as a bloated contractor clinging to Cold War dreams, while others saw it as a misunderstood giant lurking in plain sight.
Five years later, that argument is mostly finished. Palantir’s stock price has increased by more than 1,900%, resulting in a market valuation of over $440 billion, surpassing that of Boeing (BA) , IBM (IBM) , and Advanced Micro Devices (AMD) .
It used to be a little data firm, but today it’s one of the 20 most valuable public corporations in the U.S.
This isn’t just a narrative about a stock that’s rising rapidly.
Palantir is now at the core of something far bigger: a high-stakes meeting of AI, national security, and global power. It operates software in ICE detention cells, NATO infrastructure, and business supply chains for a range of industries, from fast food to aerospace.
Palantir’s biggest and most significant gain yet came only weeks after it achieved its first billion-dollar sales milestone: a $10 billion, 10-year contract with the U.S. Army.
The question is no longer whether Palantir can grow, but rather how much it can grow from this point forward.
Palantir secured its largest contract to date in July: a 10-year, $10 billion agreement with the U.S. Army.
The deal makes Palantir the backbone of the military’s battlefield intelligence systems, which help connect troops, sensors, and commanders across domains.
It’s not only about making money. The contract embeds Palantir’s software deeply within the U.S. defense infrastructure, a level of long-term importance that few companies ever achieve.
People on Wall Street liked it. The stock went up.
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However, critics argue that Palantir’s increasing influence over defense and surveillance raises new moral concerns.
Those worries aren’t new. Palantir’s deals with ICE led to protests. Karp has publicly defended the fact that its AI tools now help operations in Israel and Ukraine.
The numbers are hard to ignore, though.
Palantir now has more than 849 customers, up from 125 when it first started. It just made more than $1 billion in sales in a quarter. Business, which was once an afterthought, is now booming.
But the main part is still the government, and this new contract shows that Palantir works with more than just the military.
Palantir’s business is doing well, and not just in Washington.
Last quarter, its business income in the U.S. grew by 93% compared to the same time the previous year. Total bookings rose 185% to $1.1 billion. And now, big clients include Wendy’s (WEN) , Lear (LEA) , and American Airlines (AAL) .
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What fueled that growth? AIP is Palantir’s platform for artificial intelligence. It enables businesses to run large language models safely, using sensitive data without exposing it to outside systems.
That has made it a favorite in fields with very low profit margins and significant operational risk, such as manufacturing, logistics, and aerospace. It also helps Palantir distance itself from the “government-only” label that has scared investors in the past.
But there’s a cost to the hype.
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Palantir now trades at more than 220x forward earnings — higher than Tesla (TSLA) and above most software peers. Its forward-revenue multiple is above 80x.
Karp isn’t worried. He told people who didn’t like the price to “exit.”
However, even optimistic analysts agree that the stock leaves little room for error at these levels.
It has been anything but predictable that Palantir would rise. However, even now, with explosive growth and a $10 billion runway, the next chapter is not yet set in stone.
One warning sign is the risk of concentration. Palantir still relies heavily on the U.S. government, despite generating revenue. Any changes in budgets, leadership, or regulatory scrutiny could slow down progress.
Another is execution. A 10-year military contract guarantees income, but it also raises expectations. If delivery is late or the service isn’t up to par, it’s a long way down.
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Trust is another problem. As Palantir’s software is integrated into airports, hospitals, police stations, and military command centers, concerns about privacy, transparency, and civilian oversight also arise.
Insider optics don’t work. By September, CEO Alex Karp wants to sell almost $1.2 billion worth of shares. Although it was disclosed through a trading plan, it still puts pressure on sentiment.
Expectations are the simplest risk of all.
The stock price has gone up almost 2,000% in five years, and valuation multiples are in the triple digits. Even good news might not be enough.
Palantir’s first five years as a public company were all about showing that it was a good fit.
It gained trust from governments, established a name for itself in the AI business world, and quieted many of the early critics who said it was just a fancy defense contractor.
But the next step will test something deeper: whether a business that built its reputation on crisis, secrecy, and war can become a permanent platform without losing the edge that got it there.
Investors think it can. The market has, for sure.
But in technology, just like in politics, no advantage lasts forever.
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This story was originally reported by TheStreet on Oct 6, 2025, where it first appeared in the Technology Business News section. Add TheStreet as a Preferred Source by clicking here.