Wall Street’s AI Obsession: Why Palantir Dominates the Conversation in 2025

Palantir isn't just another tech stock—it's Wall Street's latest adrenaline shot. The AI powerhouse keeps traders glued to their Bloomberg terminals, but what's fueling the frenzy?

Data dominance or hype bubble? Palantir's tech slices through mountains of intel like a hot knife, turning chaos into actionable gold for governments and corporations. No wonder hedge funds are drooling.

Yet skeptics whisper: Is this just another 'story stock' to justify outrageous multiples? (Cue eye-roll at the 17th 'AI revolution' pitch this quarter.) Either way—love it or hate it—Palantir's gravitational pull on capital markets is undeniable. For now.

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Artificial intelligence (AI) is the biggest trend in the markets today, and with so many companies providing exposure to it in different ways, it can be challenging to parse the best AI stocks to buy. What appeals to many investors are huge growth opportunities and technology that provides a moat. That's where Palantir comes in.

Some of the large AI companies likeandare already so big that it's debatable how much bigger they can get. Stocks generally MOVE on growth, and the larger the foundation, the harder it is to increase it in percentages. Finding a younger company with growth prospects that can still move the needle can be much more attractive to growth investors.

Palantir provides an AI platform that organizes data, connecting data from different places to simplify complex operations. Its original product was built for government clients, but it now has a product for commercial use as well, which is growing quickly.

Its government and defense contracts give it stability and create a high barrier to entry, while the commercial platform in the U.S. is growing at a faster pace -- up 71% year over year in the 2025 first quarter, outpacing total company revenue growth of 39%. As more companies see the benefits of using AI, this segment has a long growth runway.

With total company revenue of only $3.1 billion over the trailing 12 months, Palantir could continue to enjoy high and profitable sales growth for many years, with a stock gain to match. That's something for investors to get excited about.