If You Invested $10,000 in Palantir Before It Released Its AIP Platform, Here's What Your Stake Would Be Worth Today

Palantir Technologies (NASDAQ: PLTR) has gone from an obscure AI player to a widely known and widely followed stock in recent years. The software company was largely a military and intelligence contractor before it widened its ambitions in April 2023 with the launch of its revolutionary Artificial Intelligence Platform (AIP).

How much of a game changer was AIP? Well, had you invested $10,000 in Palantir on April 26, 2023 -- the day before the platform came out -- you'd be sitting on a position worth $226,400 today. Palantir stock is up more than 2,100% since that fateful day, making it one of the best investments you could have made this decade, as profits and revenue have exploded.

The stock is on the run again and is currently just 15% off its all-time high. Here's why AIP is so important -- and profitable -- for Palantir.

Image source: Getty Images.

The magic of AIP

The Artificial Intelligence Platform is effective not as a stand-alone product, but in how it makes the rest of Palantir's vaunted software work better. The data analytics specialist has powerful software, such as its Foundry platform for commercial businesses and its Gotham platform for government agencies, that's capable of gathering information from a wide array of sources and systems, then integrating it in real-time to provide insights that help users make decisions. Then there's Palantir's ontology, which creates a digital twin of a client's operations for its AI to review and analyze, allowing it to recommend improvements.

AIP's role is to integrate with large language models, enabling both Palantir's analytics software and its ontology. This allows users to submit queries and retrieve information easily, and also enables Palantir's AI to make recommendations and execute tasks. The result has been a platform that is much easier to use than those offered by rivals -- and it provides results that are revolutionizing businesses across the country. In short, it's showing clients how they can use AI to modernize their businesses in ways that were inconceivable just three years ago.

To illustrate how much AIP has changed Palantir's business -- and in particular, its opportunity with commercial clients -- look at the company's last earnings report before AIP came out -- the first quarter of 2023 -- and compare it to the most recent one. The majority of Palantir's revenue growth over that period has come from the commercial side of the business.

Data source: Palantir.

Revenue and profit growth should only accelerate from here. Palantir has enjoyed more than 100% growth in the domestic commercial sector over the last four quarters and is projecting full-year growth in its U.S. commercial sector of 134%. Palantir is expecting third-quarter revenue of $2.16 billion and has just closed $3.37 billion in total contract value -- including $2.13 billion of U.S. commercial contract value. I would not be surprised to see its U.S. commercial revenue top its U.S. government revenue before the end of the year.

So, if you didn't invest in Palantir back in April 2023, don't fret. I think this growth engine has a long way to go.

Patrick Sanders has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.