‘It’s a ChatGPT Moment,’ Says Top Investor About Palantir Stock

Investors and analysts are running out of superlatives to describe Palantir (NASDAQ:PLTR) following the company’s Q4 2024 print.

There’s plenty of fodder backing up the excitement. Revenues soared by 36% year-over-year to $828 million, beating expectations by more than $50 million. This was driven in large part by galloping U.S. commercial revenues, which were up 64%.

Moreover, testimonials from industry supporting the wonders of PLTR abounded, providing further bullish sentiment for the big data company’s services.

This momentum has propelled company share prices sky-high. The stock has gained over 360% during the past twelve months and has increased by over 33% this year alone.

Could these inflated prices signify the end of the bull run? Not according to one top investor known by the pseudonym Noah’s Arc Capital Management, who believes there is plenty of runway up ahead.

“Despite a premium P/E ratio, Palantir’s robust growth metrics and forward revenue projections justify the valuation, indicating strong buy potential,” explains the 5-star investor, who sits in the top 3% of TipRanks’ stock pros.

Noah’s Arc explains Palantir has demonstrated its ability to attract both commercial and governmental clients, noting that the advent of more economical AI models and a slew of corporate clients thirsty for AI will further gin up business for the company.

“Revenue growth is accelerating. This is incredible,” notes the investor. “It’s frankly rare for companies of their scale to see revenue growth accelerate. This is why I am calling this growth their ‘ChatGPT Moment.’”

Noah’s Arc acknowledges that PLTR’s valuation is steep, pointing out that the company’s forward non-GAAP P/E is 639% more than the sector median. That being said, the investor believes that Palantir’s growth trajectory makes a 700% premium over the sector average price-to-earnings ratio justified, leading to the conclusion that there’s still more upside to be had.

“Not only was Palantir’s Q4 exceptional, but they also have incredible growth potential over the next year or so,” concludes Noah’s Arc, who is rating PLTR a Strong Buy. (To watch Noah’s Arc’s track record, click here)

Wall Street is not quite as convinced. With 2 Buy, 11 Hold, and 5 Sell ratings, PLTR holds a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $88.60 would lead to losses in the low double-digits. (See PLTR stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.