Valued at a market cap of $300.5 billion, Palantir (PLTR) stock has been on an absolute tear since the start of 2023. The high-flying tech stock went public in October 2020 at $10 per share. Today, PLTR stock trades near $128, and shares are up more than 1,250% over just the past two years. 

Earlier this week, Palantir stock reached a new all-time high above $130 following a Bank of America upgrade and the company's first-ever insider purchase. The investment bank raised its price target on Palantir to $150 from $125, maintaining a “Buy” rating.

BofA analysts distinguished Palantir from competitors, noting the company enables clients to deploy AI-powered software that delivers specific outcomes, rather than offering the “ChatGPT-wrappers” common among other AI solutions. The bank highlighted accelerating product launches and customer acquisition rates in Palantir’s financial results.

Moreover, Palantir could benefit from a recent executive order on defense acquisitions that may advantage firms with existing Pentagon contracts. 

Let’s see if Palantir stock is still a good buy at all-time highs. 

Palantir Continues to Grow at a Steady Pace

Palantir Technologies delivered exceptional results in Q1, with revenue surging 39% year-over-year to $883.9 million. The data analytics software company reported income from operations of $176 million, or $390.7 million on an adjusted basis. 

Palantir maintained strong profitability with gross profit reaching $710.9 million, indicating an 80% gross margin. When excluding stock-based compensation, gross margin stood at 82%, slightly below the 83% adjusted margin from the same period last year.

Palantir ended Q1 with 769 customers, an increase of 39% from 554 customers in the year-ago period. Its top twenty customers averaged $70 million in revenue during the trailing 12 months, up 26% from $55.5 million in the prior-year period, demonstrating deepening relationships with key accounts.

Government sector revenue grew 45% year-over-year, accounting for 55% of total revenue, while commercial revenue increased 33%, making up the remaining 45%. U.S. commercial customers showed strong momentum, with revenue jumping 71% to $255 million. 

Palantir’s domestic business remains dominant, with U.S. customers accounting for 71% of total revenue in Q1. 

The company continues to invest in research and development, with expenses rising 23% year-over-year to support ongoing innovation in artificial intelligence capabilities. Sales and marketing expenses increased 22%, reflecting expanded go-to-market efforts.

Palantir maintained a strong financial position with $5.4 billion in cash, cash equivalents, and short-term U.S. Treasury securities as of March 31, 2025, with no outstanding debt. The company also has an additional $500 million in undrawn revolving commitments available.

Is Palantir Stock Overvalued?

Palantir’s enviable run has meant that the tech stock trades at an extremely lofty valuation. Today, PLTR stock is priced at a forward price-to-earnings multiple of 220x compared to its 5-year average multiple of 126x. During the bear market of 2022, the tech stock was priced at a much lower price-earnings multiple of 33x. 

Out of the 23 analysts covering PLTR stock, three recommend “Strong Buy,” 12 recommend “Hold,” one recommends “Moderate Sell,” and four recommend “Strong Sell.” The average target price for Palantir stock is $93.89, significantly below the current trading price near $128.