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Could This Key Development Drive Palantir Stock to New Heights?

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  • The U.S. Army is expanding its relationship with Palantir.

  • The service is also planning to introduce a new artificial intelligence (AI)-centric job field for soldiers.

  • Palantir isn’t cheap, but offers a compelling opportunity for those with a long investing time horizon.

  • 10 stocks we like better than Palantir Technologies ›

Artificial intelligence (AI) has been around in some form or fashion for over 50 years, but recent developments in the field of generative AI have attracted the attention of Wall Street and Main Street alike. These new AI systems have the ability to refine and distill massive amounts of data, create original content, and streamline processes — thereby increasing productivity. Potential applications abound, and individuals, businesses, and governments are all looking for ways to cash in on AI.

One of the undeniable beneficiaries of this trend is Palantir Technologies (NASDAQ: PLTR). The company has risen from near obscurity to be one of Wall Street’s hottest properties. The stock is up 85% so far this year and boasts gains of 1,760% since the dawn of generative AI in late 2022.

While some investors fear Palantir’s growth will eventually fade, recent developments help illustrate the long runway ahead and why the stock might still be a buy, despite its astronomical valuation.

Image source: Getty Images.

Investors may recall that in May 2024, Palantir was awarded a $480 million, five-year contract by the U.S. Army for its Maven Smart System. The system integrates data from satellites, drones, and other intelligence sources, using AI and computer vision to scan the battlefield and identify enemy targets. The cutting-edge system also helps prioritize and track the movement of enemy systems, as well as identifying friendly forces in the area. By providing real-time data, Maven gives analysts actionable intelligence.

Military leaders were so impressed with the system that in September, they added a $99.8 million addendum to the contract, expanding access to the Maven system across all branches of the U.S. military, including the Army, Air Force, Space Force, Navy, and Marine Corps. The expanded access improves the interaction and operational capabilities between different branches of the service.

There’s more. By May 2025, Pentagon leaders boosted the contract value by an additional $792 million over four years, bringing the total value of the project to more than $1.3 billion through 2029. A defense official cited the “growing demand” for the system as the catalyst for the increasing contract size.

This contract is only one of many, but it helps to illustrate one of Palantir’s secret weapons: that of “increasing demand.” When users — military or enterprise — get their hands on Palantir’s systems and actually use them, they begin to understand the myriad ways the system can be deployed. This leads to new users and additional use cases, and ultimately leads to Palantir expanding its relationships with existing customers.

Finally, word broke this week that the U.S. Army is “laying the groundwork for a sweeping expansion of its AI capabilities,” according to Military.com. The service is developing a military occupational specialty (MOS) focused on AI. The career field, designated 49B, will be focused on AI and machine learning, which shows that the U.S. military is increasingly betting on AI as the future of modern warfare. As a leading provider of AI tools to the U.S. Army, Palantir will likely benefit from this development.

Palantir introduced its Artificial Intelligence Platform (AIP) in April 2023, which helps businesses “leverage the power of large language models (LLMs) on their own privately held datasets.” The company then adopted a strategy that has proven wildly successful since its introduction. To capitalize on the unprecedented demand for AIP, the company began hosting boot camps, “immersive, hands-on-keyboard sessions” that pair customers with Palantir engineers, which allows them to “go from zero to use case in just one to five days.”

Because users experience the platform firsthand, they quickly understand the value AIP can bring to their organization and its ability to solve company-specific business challenges. Furthermore, once these AI systems are established within an organization, chances are good that the company will ultimately expand its relationship with Palantir.

Don’t take my word for it. In the first quarter, Palantir’s revenue of $884 million grew 39% year over year and 7% quarter over quarter — but that only tells part of the story. U.S. commercial revenue, which includes AIP, grew 71% year over year and 19% quarter over quarter, and now accounts for 41% of Palantir’s total sales — not bad for a product that’s only been around for about two years.

There’s more good news: Palantir’s so-called “Rule of 40” score, which evaluates the company’s revenue growth in relation to its profits, clocks in at 83%, showing a healthy balance of growth and profitability. That’s up from just 38% less than two years ago and illustrates the quality of Palantir’s earnings.

To close out the quarter, Palantir’s remaining performance obligation (RPO), or contractually obligated sales that haven’t been recognized as revenue, jumped 46% to a record $1.9 billion, while the remaining deal value (RDV) of its U.S. commercial segment soared 127% to $2.32 billion. This gives investors visibility into Palantir’s future and helps illustrate that its growth streak still has room to run.

Palantir’s track record of success and the unprecedented demand for its services come with a hefty price tag. The stock currently sells for a lofty 82 times forward sales and 234 times forward earnings. This is enough to make some investors run for cover, but the most commonly used valuation metrics tend to struggle with high-growth stocks.

Because of its high multiples, Palantir stock is prone to wild swings of volatility and, as such, won’t be a good fit for every investor. However, as my colleague Adia Cimino points out, valuations don’t provide a complete picture, and “If you refused to buy these companies because of their high valuations, you might have missed out on owning some of the world’s most successful technology stocks.”

There’s little question that the adoption of AI is just getting started. Given Palantir’s industry-leading government and enterprise-level AI solutions and its track record of expanding relationships, I would posit that these recent developments could help drive the stock to new heights. Those concerned about its valuation should consider buying just a small stake to start, or dollar-cost averaging into a position over time.

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Danny Vena has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.

Could This Key Development Drive Palantir Stock to New Heights? was originally published by The Motley Fool



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AI Video Creation for Social Impact: PixVerse Empowers Billions to Tell Their Stories Using Artificial Intelligence | AI News Detail

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The rapid evolution of artificial intelligence in video creation tools is transforming how individuals and businesses communicate, share stories, and market their products. A notable development in this space comes from PixVerse, an AI-driven video creation platform, as highlighted in a keynote address by co-founder Jaden Xie on July 11, 2025. During his speech titled AI Video for Good, Xie emphasized the platform’s mission to democratize video production, stating that billions of people worldwide have never created a video or used one to share their stories. PixVerse aims to empower these individuals by leveraging AI to simplify video creation, making it accessible to non-professionals and underserved communities. This aligns with broader AI trends in 2025, where generative AI tools are increasingly focused on user-friendly interfaces and inclusivity, enabling content creation at scale. According to industry reports from sources like TechRadar, the global AI video editing market is projected to grow at a compound annual growth rate of 25.3% from 2023 to 2030, driven by demand for accessible tools in education, marketing, and personal storytelling. PixVerse’s entry into this space taps into a critical need for intuitive solutions that lower the technical barriers to video production, positioning it as a potential game-changer in the content creation ecosystem. The platform’s focus on empowering billions underscores a significant shift towards AI as a tool for social impact, beyond mere commercial applications.

From a business perspective, PixVerse’s mission opens up substantial market opportunities, particularly in sectors like education, small business marketing, and social media content creation as of mid-2025. For small businesses, AI-driven video tools can reduce the cost and time associated with professional video production, enabling them to compete with larger brands on platforms like YouTube and TikTok. Monetization strategies for platforms like PixVerse could include subscription-based models, freemium access with premium features, or partnerships with social media giants to integrate their tools directly into content-sharing ecosystems. However, challenges remain in scaling such platforms, including ensuring data privacy for users and managing the high computational costs of AI video generation. The competitive landscape is also heating up, with key players like Adobe Express and Canva incorporating AI video features into their suites as reported by Forbes in early 2025. PixVerse must differentiate itself through user experience and accessibility to capture market share. Additionally, regulatory considerations around AI-generated content, such as copyright issues and deepfake risks, are becoming more stringent, with the EU AI Act of 2024 setting precedents for compliance that PixVerse will need to navigate. Ethically, empowering users must be balanced with guidelines to prevent misuse of AI video tools for misinformation.

On the technical front, PixVerse likely relies on advanced generative AI models, such as diffusion-based algorithms or transformer architectures, to automate video editing and content generation, reflecting trends seen in 2025 AI research from sources like VentureBeat. Implementation challenges include optimizing these models for low-bandwidth environments to serve global users, especially in developing regions where internet access is limited. Solutions could involve edge computing or lightweight AI models to ensure accessibility, though this may compromise output quality initially. Looking ahead, the future implications of such tools are vast—by 2030, AI video platforms could redefine digital storytelling, with applications in virtual reality and augmented reality content creation. PixVerse’s focus on inclusivity could also drive adoption in educational sectors, where students and teachers create interactive learning materials. However, businesses adopting these tools must invest in training to maximize their potential and address ethical concerns through transparent usage policies. As the AI video market evolves in 2025, PixVerse stands at the intersection of technology and social good, potentially shaping how billions engage with video content while navigating a complex landscape of competition, regulation, and innovation.

FAQ:
What is PixVerse’s mission in AI video creation?
PixVerse aims to empower billions of people who have never made a video by using AI to simplify video creation, making it accessible to non-professionals and underserved communities, as stated by co-founder Jaden Xie on July 11, 2025.

How can businesses benefit from AI video tools like PixVerse?
Businesses, especially small enterprises, can reduce costs and time in video production, enabling competitive marketing on social platforms. Monetization for platforms like PixVerse could involve subscriptions or partnerships with social media ecosystems as of mid-2025.

What are the challenges in implementing AI video tools globally?
Challenges include optimizing AI models for low-bandwidth regions, managing high computational costs, ensuring data privacy, and addressing regulatory and ethical concerns around AI-generated content as highlighted in industry trends of 2025.



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Smishing scams are on the rise made easier by artificial intelligence, new tech

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Smishing is a sort of portmanteau of SMS and phishing in which a text message is used to try to get the target to click on a link and provide personal information.Sean Kilpatrick/The Canadian Press

If it seems like your phone has been blowing up with more spam text messages recently, it probably is.

The Canadian Anti-Fraud Centre says so-called smishing attempts appear to be on the rise, thanks in part to new technologies that allow for co-ordinated bulk attacks.

The centre’s communications outreach officer Jeff Horncastle says the agency has actually received fewer fraud reports in the first six months of 2025, but that can be misleading because so few people actually alert the centre to incidents.

He says smishing is “more than likely increasing” with help from artificial intelligence tools that can craft convincing messages or scour data from security breaches to uncover new targets.

The warning comes as the Competition Bureau sent a recent alert about the tactic because it says many people are seeing more suspicious text messages.

Smishing is a sort of portmanteau of SMS and phishing in which a text message is used to try to get the target to click on a link and provide personal information.

The ruse comes in many forms but often involves a message that purports to come from a real organization or business urging immediate action to address an alleged problem.

It could be about an undeliverable package, a suspended bank account or news of a tax refund.

Horncastle says it differs from more involved scams such as a text invitation to call a supposed job recruiter, who then tries to extract personal or financial information by phone.

Nevertheless, he says a text scam might be quite sophisticated since today’s fraudsters can use artificial intelligence to scan data leaks for personal details that bolster the hoax, or use AI writing tools to help write convincing text messages.

“In the past, part of our messaging was always: watch for spelling mistakes. It’s not always the case now,” he says.

“Now, this message could be coming from another country where English may not be the first language but because the technology is available, there may not be spelling mistakes like there were a couple of years ago.”

The Competition Bureau warns against clicking on suspicious links and forwarding texts to 7726 (SPAM), so that the cellular provider can investigate further. It also encourages people to delete smishing messages, block the number and ignore texts even if they ask to reply with “STOP” or “NO.”

Horncastle says the centre received 886 reports of smishing in the first six months of 2025, up to June 30. That’s trending downwards from 2,546 reports in 2024, which was a drop from 3,874 in 2023. That too, was a drop in reports from 7,380 in 2022.

But those numbers don’t quite tell the story, he says.

“We get a very small percentage of what’s actually out there. And specifically when we’re looking at phishing or smishing, the reporting rate is very low. So generally we say that we estimate that only five to 10 per cent of victims report fraud to the Canadian Anti-Fraud Centre.”

Horncastle says it’s hard to say for sure how new technology is being used, but he notes AI is a frequent tool for all sorts of nefarious schemes such as manipulated photos, video and audio.

“It’s more than likely increasing due to different types of technology that’s available for fraudsters,” Horncastle says of smishing attempts.

“So we would discuss AI a lot where fraudsters now have that tool available to them. It’s just reality, right? Where they can craft phishing messages and send them out in bulk through automation through these highly sophisticated platforms that are available.”

The Competition Bureau’s deceptive marketing practices directorate says an informed public is the best protection against smishing.

“The bureau is constantly assessing the marketplace and through our intelligence capabilities is able to know when scams are on the rise and having an immediate impact on society,” says deputy commissioner Josephine Palumbo.

“That’s where these alerts come in really, really handy.”

She adds that it’s difficult to track down fraudsters who sometimes use prepaid SIM cards to shield their identity when targeting victims.

“Since SIM cards lack identification verification, enforcement agencies like the Competition Bureau have a hard time in actually tracking these perpetrators down,” Palumbo says.

Fraudsters can also spoof phone numbers, making it seem like a text has originated with a legitimate agency such as the Canada Revenue Agency, Horncastle adds.

“They might choose a number that they want to show up randomly or if they’re claiming to be a financial institution, they may make that financial institutions’ number show up on the call display,” he says.

“We’ve seen (that) with the CRA and even the Canadian Anti-Fraud Centre, where fraudsters have made our phone numbers show up on victims’ call display.”



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HL7 launches office to lead global health AI deployment

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HL7 launches office to lead global health AI deployment | Healthcare IT News



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