Palantir’s Stock Is Up Over 50% Since Reporting Earnings. Is It Heading for a New All-Time High?

Key Points

• Palantir’s growth rate was an impressive 93% in its most recent quarter.

• CEO Alex Karp has been critical of frontier AI models, which may have endeared his company to many tech investors.

• The stock’s valuation, however, could limit its future gains.

• 10 stocks we like better than Palantir Technologies ›

Palantir Technologies (NASDAQ:PLTR) stock has been choppy for much of the year, and up until its latest earnings report, it was looking like the stock would end up down big this year. Things, however, have changed quickly.

Prior to the release of its second-quarter earnings in August, the stock was trading at around $125. As of the end of last week, it was back up to around $190. What’s going on with the stock, and could it be heading for a new all-time high before the end of 2026?

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Why has Palantir surged so much since reporting earnings?

Palantir has been a growth machine, but despite posting strong numbers earlier in the year, they weren’t enough to send the stock soaring. But in August, when Palantir posted its latest numbers, things seemed to change. The company’s growth rate rose to 93%, up from an already high rate of 85% in the previous quarter.

Not only were the results impressive, but CEO Alex Karp’s criticism at the time of frontier artificial intelligence (AI) models may have given growth investors yet another reason to have faith in the company’s future. Palantir’s technology enables companies to control their data and keep it secured, without fears of an AI model potentially learning from that information. For companies, this can be a compelling reason to rely on Palantir’s AI services rather than others, knowing that their data will remain safe.

And that differentiating factor may have also helped give the tech stock a boost. Although its numbers were already strong, Karp’s vision may have solidified the stock’s standing in the eyes of many investors.

Can Palantir’s stock keep going higher this year?

Palantir’s stock hit highs of more than $190 last week before ultimately giving back some gains. Its all-time high is $207.52, and for it to get to that level again, it would need to rise by less than 10% from where it closed on Friday. It’s not a big jump, but investors shouldn’t forget this is still a very expensive stock to own, as it trades at more than 160 times its trailing earnings.

When Palantir’s stock gets hot, however, valuation hasn’t gotten in the way. That can be both a blessing and a curse, since the stock’s performance may depend more heavily on investor sentiment than valuation. That’s why I do think Palantir’s stock may hit a new all-time high this year. But it’s still a stock investors should tread carefully with, as at such a high price tag, there is considerable downside risk.

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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.