Palantir stock price jumps a whopping 1,876% in 5 years: Why investors are going bananas

Palantir Technologies has captured investors' imagination.

Its stock price soaring 141.92% year-to-date in 2025, reaching $182.74 as of August 11, 2025, and a staggering 1,876.82% over the past five years.

This meteoric rise reflects Palantir’s growing influence in big data analytics and artificial intelligence (AI), positioning it as a powerhouse in both government and commercial sectors.

People behind the company

But what’s driving this investor frenzy, and who’s behind this enigmatic company?

Founded in 2003 in Denver, Colorado, Palantir Technologies was born from a vision to harness data for counterterrorism efforts post-9/11.

Its founders — Peter Thiel, Alex Karp, Joe Lonsdale, Stephen Cohen, and Nathan Gettings — brought diverse expertise to the table.

Thiel, a renowned venture capitalist and PayPal co-founder, provided financial heft, while Karp, the current CEO with a Ph.D. in philosophy, shaped the company’s unconventional culture.

Lonsdale, Cohen, and Gettings contributed technical and operational prowess, with early backing from In-Q-Tel, the CIA’s venture arm, solidifying Palantir’s government ties.

What does Palantir do exactly?

Palantir specialises in big data analytics and AI, offering four core platforms:

• Gotham: Used by government agencies for intelligence and defence;

• Foundry: A commercial platform for enterprise data operations;

• Apollo: A cloud-agnostic delivery system; and

• AIP: An AI platform launched in 2023 that integrates large language models for enterprise AI solutions.

What these platforms do:

Gotham powers missions like counterterrorism, by analysing vast datasets. while Foundry helps industries like healthcare and manufacturing optimise operations.

In Q1 2024, Gotham generated $308 million (+22% YoY), and Foundry brought in $282 million (+27% YoY), reflecting robust growth.

Why investors are going bananas

Investors are going wild for several reasons.

First, Palantir’s Q2 2025 earnings reported a record $1 billion in revenue, up 48% YoY, with US commercial revenue surging 93% YoY.

The company’s customer base grew 43% to 849, driven by AIP’s appeal in the AI revolution.

'Hypergrowth'

Posts on X highlight investor excitement, with analysts like Citi and Morgan Stanley upgrading price targets to $158 and $155, respectively, citing Palantir’s “hyper-growth” in AI solutions.

A $10 billion, 10-year US Army contract further cements its government dominance.

Overpriced?

However, Palantir’s high price-to-earnings ratio raises concerns about overvaluation, and privacy issues tied to its surveillance contracts spark debate.

Despite these risks, its market cap hit $429.976 billion, ranking it among the world’s top companies.

Palantir’s ability to secure massive contracts, like a $463 million deal with US Special Operations Command, and its pivot to commercial AI markets fuel optimism.

In short: Palantir’s blend of cutting-edge AI, government contracts, and commercial expansion makes it a darling of investors.

While its valuation invites scrutiny, the company’s ability to turn data into actionable insights keeps it at the forefront of the tech boom.

As Palantir continues to innovate, its stock trajectory suggests it’s a force to watch.