Market Watch: Palantir’s Valuation Concerns Amid AI Boom
Palantir (PLTR) has surged 945% since January 2024, reaching a $426 billion market cap as generative AI demand fuels its growth. Yet skepticism looms—its 132 price-to-sales ratio dwarfs peers, with Q2 2025 revenue up only 48% YoY. The stock’s trajectory may hinge on accelerating growth to justify its premium.
Meanwhile, undervalued players in AI hardware and gaming are poised to eclipse Palantir. Nvidia’s chips and Sony’s consoles exemplify sectors where fundamentals align with market potential. "Valuation matters when HYPE fades," notes a Bernstein analyst, underscoring the shift toward sustainable growth stories.