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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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KentuckianaWorks addresses concerns about jobs and AI

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LOUISVILLE, Ky. — While tech CEOs have made claims about the potential artificial intelligence has to wipe out parts of the workforce, Sarah Ehresman, director of labor market intelligence for KentuckianaWorks, said she thinks those concerns are overblown.


What You Need To Know

  • Generative AI has been used more and more in recent years to help workers in their professional life
  • When it comes to jobs, Sarah Ehresman of KentuckianaWorks said many still need a human element, as AI is imperfect
  • Data shows around one-third of Jefferson County’s workforce could see half or more of their tasks affected by AI


“We don’t have to fear this apocalypse of everyone losing their jobs,” Ehresman said. “It should not be something that we totally run away from.”

Generative AI has been used more and more in recent years to help workers in their professional life, with many hoping to improve their speed and efficiency. 

Ehresman said she also uses AI in her daily work life to write, edit and even code. She’s able to complete a task with the help of AI within seconds. 

“I mean, something like this could potentially take you a whole day to figure out, but still, definitely not two minutes,” she said. “I don’t have to spend much time doing it. But I am able to review the code and make sure it’s accurate and that I’m getting the results that I expect.”

As for fears of being replaced by technology when it comes to some jobs, Ehresman said a human element is still necessary because AI is imperfect. 

“You know, artificial intelligence is known to hallucinate, produce bad results; it’s not perfect,” she said. “That’s where the human capabilities still matter a lot, to make sure that the results are what you would expect it to be.”

Whether people fear it or rely on it, Ehresman said AI is here to stay and should be embraced.     

“The best thing that workers can do at this point is really figure out how to work with the technology, not run away from it because they fear that it might replace them, but figure out how to use it in an effective way to make them more productive,” Ehresman said.

According to Brookings data, it is estimated that approximately 34% of Jefferson County’s workers could see half or more of their tasks affected by the use of artificial intelligence, which is a lower rate compared to coastal tech hubs.



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Leading Is Emotionally Draining. Here’s How to Recover.

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Take the time to reflect, reframe, and restore.



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Artificial Intelligence (AI) In Beauty and Cosmetics Market

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Artificial Intelligence (AI) In Beauty and Cosmetics Market

The Artificial Intelligence (AI) in Beauty and Cosmetics market is expected to be valued at USD 3.9 billion in 2024 and is projected to reach approximately USD 17.1 billion by 2033, growing at a CAGR of around 17.9% from 2025 to 2033.

Artificial Intelligence (AI) in Beauty and Cosmetics Market Overview:

The AI in Beauty and Cosmetics market is rapidly evolving as brands increasingly integrate smart technologies to enhance customer experiences and streamline operations. AI-powered tools such as virtual try-ons, personalized skincare recommendations, and AI-driven diagnostic tools are revolutionizing how consumers discover, select, and purchase beauty products. Companies are leveraging machine learning and facial recognition to deliver hyper-personalized solutions tailored to individual skin types, preferences, and concerns. E-commerce growth and rising demand for immersive shopping experiences are fueling AI adoption. Furthermore, AI is playing a key role in trend forecasting, inventory management, and product development, positioning it as a transformative force in the global beauty industry.

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The report further explores the key business players along with their in-depth profiling

L’Oréal Group, Procter & Gamble Co., Estée Lauder Companies Inc., Shiseido Company Limited, Unilever plc, LVMH Moët Hennessy Louis Vuitton, Coty Inc., Perfect Corp., Revieve Oy, and Olay (P&G).

💄 Artificial Intelligence (AI) in Beauty and Cosmetics Market Segments:

✅ By Type:

• Skin Care

• Hair Care

• Makeup

• Fragrances

• Others

✅ By Technology:

• Machine Learning (ML)

• Natural Language Processing (NLP)

• Computer Vision

• Chatbots & Virtual Assistants

• Augmented Reality (AR) Integration

✅ By Application:

• Personalized Product Recommendations

• Virtual Try-On & Beauty Analysis

• Skin Diagnostics

• Customer Service & Chatbots

• Inventory & Supply Chain Optimization

• Product Development & Formulation

✅ By Deployment Mode:

• Cloud-Based

• On-Premise

✅ By End User:

• Cosmetics Brands & Retailers

• Dermatology Clinics

• E-commerce Platforms

• Salons & Spas

• Individual Consumers

Report Drivers & Trends Analysis:

The report also discusses the factors driving and restraining market growth, as well as their specific impact on demand over the forecast period. Also highlighted in this report are growth factors, developments, trends, challenges, limitations, and growth opportunities. This section highlights emerging Artificial Intelligence (AI) In Beauty and Cosmetics Market trends and changing dynamics. Furthermore, the study provides a forward-looking perspective on various factors that are expected to boost the market’s overall growth.

Competitive Landscape Analysis:

In any market research analysis, the main field is competition. This section of the report provides a competitive scenario and portfolio of the Artificial Intelligence (AI) In Beauty and Cosmetics Market’s key players. Major and emerging market players are closely examined in terms of market share, gross margin, product portfolio, production, revenue, sales growth, and other significant factors. Furthermore, this information will assist players in studying critical strategies employed by market leaders in order to plan counterstrategies to gain a competitive advantage in the market.

Regional Outlook:

The following section of the report offers valuable insights into different regions and the key players operating within each of them. To assess the growth of a specific region or country, economic, social, environmental, technological, and political factors have been carefully considered. The section also provides readers with revenue and sales data for each region and country, gathered through comprehensive research. This information is intended to assist readers in determining the potential value of an investment in a particular region.

» North America (U.S., Canada, Mexico)

» Europe (Germany, U.K., France, Italy, Russia, Spain, Rest of Europe)

» Asia-Pacific (China, India, Japan, Singapore, Australia, New Zealand, Rest of APAC)

» South America (Brazil, Argentina, Rest of SA)

» Middle East & Africa (Turkey, Saudi Arabia, Iran, UAE, Africa, Rest of MEA)

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⏩ In-depth analysis, as well as the market size and segmentation, help you identify current Artificial Intelligence (AI) In Beauty and Cosmetics Market opportunities.

⏩ The largest countries in each region are mapped according to their revenue contribution to the market.

⏩ The Artificial Intelligence (AI) In Beauty and Cosmetics Market research report gives a thorough analysis of the current status of the Artificial Intelligence (AI) In Beauty and Cosmetics Market’s major players.

Key questions answered in the report:

➧ What will the market development pace of the Artificial Intelligence (AI) In Beauty and Cosmetics Market?

➧ What are the key factors driving the Artificial Intelligence (AI) In Beauty and Cosmetics Market?

➧ Who are the key manufacturers in the market space?

➧ What are the market openings, market hazards,s and market outline of the Artificial Intelligence (AI) In Beauty and Cosmetics Market?

➧ What are the sales, revenue, and price analysis of the top manufacturers of the Artificial Intelligence (AI) In Beauty and Cosmetics Market?

➧ Who are the distributors, traders, and dealers of Artificial Intelligence (AI) In Beauty and Cosmetics Market?

➧ What are the market opportunities and threats faced by the vendors in the Artificial Intelligence (AI) In Beauty and Cosmetics Market?

➧ What are deals, income, and value examination by types and utilizations of the Artificial Intelligence (AI) In Beauty and Cosmetics Market?

➧ What are deals, income, and value examination by areas of enterprises in the Artificial Intelligence (AI) In Beauty and Cosmetics Market?

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➼ Historical and future market research in terms of size, share growth, volume, and sales.

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➼ Emerging key segments and regions

➼ Key business strategies by major market players and their key methods

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Contact Us:

Mr. Anurag Tiwari

Email: anurag@omrglobal.com

Contact no: +91 780-304-0404

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About Orion Market Research

Orion Market Research (OMR) is a market research and consulting company known for its crisp and concise reports. The company is equipped with an experienced team of analysts and consultants. OMR offers quality syndicated research reports, customized research reports, consulting and other research-based services. The company also offers Digital Marketing services through its subsidiary OMR Digital and Software development and Consulting Services through another subsidiary Encanto Technologies.

This release was published on openPR.



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