Palantir’s Trillion-Dollar Dream Faces Skepticism Despite AI Momentum
Palantir's stock surge of 150% over the past year has failed to dispel fears of an AI-driven market bubble. Even with robust Q3 2025 results—63% year-over-year revenue growth and a Rule of 40 score of 114%—the shares have tumbled 25% since November. The company's $2.8 billion total contract value, up 151%, signals strong pipeline potential, but investor Adam Spatacco remains cautious. "Becoming the next trillion-dollar AI stock is overly optimistic," he warns.
The divergence between Palantir's operational performance and market sentiment highlights the volatility of tech valuations in the AI era. While its government and commercial contracts demonstrate scalability, the path to a $1 trillion cap remains fraught with skepticism. The recent selloff underscores how quickly euphoria can turn to doubt, even for companies with demonstrable growth metrics.
