Palantir’s AI Boom: Is This the Best Growth Stock Under $100?
Growth stock investing can be exhilarating, nerve-racking, and even downright unexpected. Palantir Technologies (NYSE: PLTR) is one business that continues coming up on investors’ radars as tech stocks soar.
Although this artificial intelligence (AI) and data analytics powerhouse has been in the news, is it now the greatest stock to buy for less than $100? Let’s take a comprehensive look at Palantir’s company, financials, dangers, and future prospects without using any Wall Street jargon.
What Does Palantir Actually Do?
Palantir isn’t your typical tech company. It’s not making phones, social media apps, or streaming services. Instead, it specializes in big data analytics, helping governments, businesses, and organizations make sense of complex information.
The company has three major platforms:
- Gotham – Used mostly by intelligence agencies and the military to track threats and analyze security data.
- Foundry – Helps companies organize and understand massive amounts of business data.
- Apollo – A cloud-based system that allows businesses to manage software across different platforms.
Palantir’s software has been credited with helping track down Osama bin Laden and is used by the U.S. government, law enforcement agencies, and Fortune 500 companies. That’s a pretty solid client list.
How is Palantir Doing Financially?
Palantir has been growing fast, but is it making enough money to justify its stock price?
In 2024, the company reported $2.87 billion in revenue, a 29% increase from the previous year. Even more impressive, it turned a $462 million profit, which is 120% higher than the year before. That’s a big deal for a company that was losing money just a few years ago.
However, Palantir’s stock is expensive relative to its earnings. Its price-to-earnings (P/E) ratio is around 150, which is sky-high compared to most companies. This means investors are paying a premium for Palantir, betting that it will continue growing rapidly in the coming years.
AI: The Key to Palantir’s Future?
Artificial intelligence is the hottest trend in tech right now, and Palantir is positioning itself as a leader in the space.
- Government Use – The U.S. military and intelligence agencies are pouring money into AI-powered defense tools, and Palantir is winning contracts left and right.
- Commercial Growth – Palantir is expanding into private industries, helping companies like Airbus, Merck, and BP use AI to make better decisions.
If AI keeps transforming industries the way experts predict, Palantir could be in a prime position to benefit. The question is whether it can grow fast enough to justify its high stock price.
Palantir’s Stock Performance: A Wild Ride
If you’ve been following Palantir’s stock, you know it’s been anything but boring.
- In 2023, it skyrocketed over 500%, riding the wave of AI hype.
- In early 2024, it dropped 30% in just a few weeks due to fears about defense spending cuts.
That kind of volatility isn’t for the faint of heart, but some experts still believe in Palantir’s long-term potential. Tech analyst Dan Ives even named it one of his top stocks for 2025, predicting it could hit $120 per share.
How Does Palantir Compare to Other Growth Stocks?
If you’re looking for high-growth stocks under $100, Palantir isn’t the only name in the game. Here are some competitors:
- Novo Nordisk (NVO) – A pharmaceutical giant leading the charge in diabetes and weight-loss drugs.
- Carnival (CCL) – A major cruise line rebounding as travel demand surges.
- Zoom (ZM) – The company that revolutionized remote work and is still innovating in digital communication.
What makes Palantir unique is its AI-driven approach to data analytics. While other companies focus on specific industries, Palantir’s tech is being used across multiple sectors, from defense to healthcare to finance.
What Are the Risks?
No investment is a sure thing, and Palantir has its fair share of risks:
- It’s Expensive – With a P/E ratio over 150, investors are paying a premium for future growth. If that growth slows down, the stock price could drop.
- Heavy Government Dependence – Despite its expansion into private business, Palantir still relies heavily on government contracts. Any political or budget changes could impact revenue.
- Stock Volatility – Palantir’s stock swings wildly. If you’re a conservative investor, the ride might be too bumpy.
That being said, if Palantir keeps landing major AI contracts and growing its commercial business, it could still have a bright future.
Final Verdict: Is Palantir the Best Under-$100 Stock?
So, is Palantir the best growth stock under $100? The answer depends on your investment style.
- If you believe in the future of AI and don’t mind stock price swings, Palantir could be a high-risk, high-reward opportunity.
- If you prefer safer, more stable investments, you might want to look at other options like Novo Nordisk or Zoom.
At the end of the day, Palantir is not just another tech stock. It’s deeply embedded in government operations, rapidly expanding in commercial markets, and at the forefront of AI-driven data analytics.
For investors willing to take the risk, this under-$100 stock might just have the potential to become a long-term winner.
