Palantir (PLTR) Stock: Jim Cramer’s Love-Hate Paradox—Why He Won’t Buy the AI Darling

Wall Street’s favorite contrarian is at it again. Jim Cramer can’t stop raving about Palantir’s AI edge—but won’t touch the stock. What gives?

The Cramer Conundrum

CNBC’s lightning rod host calls Palantir a 'masterpiece of data warfare,' yet his portfolio remains PLTR-free. Classic hedge fund hypocrisy—pump the narrative, skip the volatility.

Silicon Valley’s Shadow Broker

Palantir’s Gotham platform now eats classified contracts for breakfast, while Foundry helps Fortune 500s mine gold from their data landfills. Revenue growth? Solid. Profitability? Finally. Stock price? Still giving analysts whiplash.

The Institutional Cold Shoulder

Big money players treat PLTR like a crypto meme coin—too much spyware baggage, not enough predictable cash flows. Meanwhile, retail traders keep the faith, hoping Peter Thiel’s Midas touch defies gravity.

Bottom Line

Cramer’s cognitive dissonance sums up Wall Street’s Palantir problem: everyone loves the tech, nobody trusts the stock. Maybe that’s the real 'big data' insight—when the suits can’t decide, the apes usually win.

TLDR

• Palantir stock has surged 74% year-to-date, turning a $10,000 investment from early 2024 into $83,000
• Jim Cramer recommends PLTR but doesn’t own it, citing the company’s nuclear operating system projects and AI algorithms
• Revenue growth accelerated to 39% overall, with U.S. commercial revenue jumping 71% year-over-year
• Stock trades at 114 times sales, making it one of the most expensive software stocks in the market
• Analysts warn the valuation is unsustainable compared to growth rates, with correction risks ahead

Palantir Technologies has become one of 2025’s hottest AI stocks. The data analytics company has delivered eye-popping returns to investors.

A $10,000 investment made at the start of 2024 is now worth $83,000. That represents an 18-month gain that most investors only dream about.

The stock has surged 74% year-to-date alone. Strong earnings reports and retail investor enthusiasm have fueled the rally.

Jim Cramer remains bullish on Palantir’s prospects. However, the Mad Money host admits he doesn’t own shares at current prices.

“There’s a company I know. I think it has an algorithm that spits out what WOULD move a stock,” Cramer said on his show.

He highlighted Palantir’s work on nuclear operating systems. The company claims its technology will help achieve on-time, on-budget nuclear construction.

Cramer has been tracking the stock’s meteoric rise. “When it was at 50 I said it was going to 100. When I said it was 100, I said it was going to 200,” he explained.

The veteran TV host can’t bring himself to raise his price target further. He questions whether the stock can realistically reach $200 per share.

Revenue Growth Accelerates Across Key Segments

Palantir’s financial performance backs up some of the market excitement. Revenue growth has accelerated to 39% year-over-year.

The U.S. commercial segment leads the charge. This division posted 71% year-over-year growth in the latest quarter.

Palantir originally focused on government contracts. The company allegedly helped track down Osama bin Laden’s final hiding place.

Commercial adoption has exploded as AI demand surges. Businesses want Palantir’s best-in-class analytics tools for their operations.

International commercial revenue remains weak. European companies haven’t embraced AI as aggressively as their American counterparts.

This geographic disparity could create future growth opportunities. Europe may eventually go “all-in” on AI like the United States has.

Valuation Concerns Mount Despite Strong Growth

The stock’s 114 times sales multiple raises red flags. Most software companies trade between 10 to 20 times sales.

Even the best software stocks rarely exceed 30 times sales. Palantir trades at nearly four times that premium level.

Nvidia provides a useful comparison point. The chip giant has similar gross margins to Palantir at around 70-80%.

Nvidia never approached 100 times sales despite revenue tripling in multiple quarters. The company currently trades at roughly one-fifth of Palantir’s sales multiple.

Nvidia grows much faster than Palantir’s 39% rate. This makes Palantir’s valuation even more questionable by comparison.

For the stock to reach millionaire-making territory, it needs 1,100% gains from current levels. That would create a $3.72 trillion market cap.

Such a valuation would make Palantir the largest company on Earth. The math doesn’t work given current revenue and profit levels.

The stock faces correction risks if growth doesn’t accelerate dramatically. Revenue would need to double or triple annually to justify current prices.