Could $1,000 Invested in Palantir Turn Into $100,000?

Palantir (NASDAQ: PLTR) went public via a direct listing on Sept. 30, 2020. A $1,000 investment at its earliest trading price of $10 would be worth about $19,400 today. That's an impressive six-year gain, but could it eventually turn that investment into $100,000?

How fast is Palantir growing?

Palantir operates two data-gathering platforms: Gotham for government clients, and Foundry for commercial clients. These platforms create digital twins of a client's entire organization by collecting data from their databases, supply chain reports, sensors, internal documents, emails, financial records, social media accounts, and other disparate sources.

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Palantir then uses its data model, Ontology, to unify that fragmented data into an easy-to-query stream of information for non-technical users. Its clients can connect that data to third-party software and large language models (including OpenAI's ChatGPT and Anthropic's Claude) via its Artificial Intelligence Platform (AIP) to make faster data-driven decisions. Its top customers include major defense and intelligence agencies, as well as commercial giants like Walmart, Amazon, and ExxonMobil.

From 2021 to 2025, Palantir's revenue grew at a 31% CAGR. It also turned profitable in 2023 and grew its EPS at a 165% CAGR over the following two years. The intensifying geopolitical conflicts drove the U.S. government to award more contracts to Palantir, and the growth of the AI market tethered more commercial customers (especially in the U.S.) to its platform.

From 2025 to 2028, analysts expect Palantir's revenue and EPS to grow at CAGRs of 59% and 70%, respectively. That growth should be fueled by the expansion of the enterprise AI market, new defense modernization contracts, and the monetization of AIP with subscription modules. However, its stock isn't cheap at 91 times next year's earnings.

Could Palantir turn $1,000 into $100,000?

Palantir's near-term future looks bright, but it probably can't maintain those breakneck growth rates. If it matches analysts' estimates through 2028 and continues to grow its EPS at an impressive 30% CAGR over the following 13 years, its EPS would reach $94.19 by 2041. At 50 times forward earnings, its stock would be trading at $4,710 in 2040.

That would be more than 24 times its current price of $194 per share and turn $19,400 today (from a $1,000 investment in its direct listing) into about $471,400 over the next 14 years. It would also turn a fresh $1,000 investment into more than $24,000. We should take those rosy estimates with a grain of salt, but they suggest it has significant upside potential.

Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Palantir Technologies, and Walmart. The Motley Fool has a disclosure policy.