If You Had Invested $10,000 in Palantir at the Start of 2025, Here’s How Much You’d Have Now

Palantir's 2025 surge turns $10K into serious gains—while traditional investors were still reading prospectuses.

The Data Juggernaut Awakens

Palantir didn't just climb—it blasted through expectations. While legacy finance was busy with spreadsheets, this data analytics powerhouse delivered returns that left the S&P 500 looking downright sleepy.

Timing Beats Timing the Market

Early 2025 investors caught the wave exactly right. The company's government contracts and commercial expansion created momentum that even skeptical analysts couldn't ignore. Turns out, betting on data-driven decision-making pays better than betting on whatever the Fed might do next.

The New Math of Tech Investing

Forget price-to-earnings ratios—Palantir rewrote the rules. Its artificial intelligence platforms and defense sector dominance created a growth story that traditional valuation models simply couldn't capture. Sometimes the market gets it right, even if Wall Street's crystal ball needs an upgrade.

Your Portfolio's Missing Piece?

That $10,000 investment would've done more than just grow—it would've outperformed nearly every major tech stock this year. But hey, there's always next year for those waiting for a 'safer' entry point. Because timing the market always works out so well.

Image source: Getty Images.

Taking a bullish stance on Palantir

Let's imagine you ignored the bears, took a bullish stance on Palantir, and decided to invest $10,000 in this player as of the first trading day of 2025. Though the stock has had its ups and downs this year, slipping in particular with the rest of the market this spring amid concern about the economy and potential U.S. tariffs on imports, it has gained more than 100% this year.

And considering this, your $10,000 investment would have doubled, reaching more than $20,700 as of the latest stock market close. That's an excellent return, with Palantir showing its strength as a growth stock.

But now you may be wondering whether this trend will continue, especially considering the stock's valuation. It's impossible to say that Palantir is cheap by traditional valuation metrics. Still, reaching these sorts of levels is a situation that's common for many technology players as they grow. It's important to keep in mind that forward price-to-earnings ratios, for example, look at earnings projections for the coming year -- but they don't reflect the earnings situation a few years down the road.

Palantir's recent earnings reports offer us reason to be optimistic about that path ahead and the long term. The company, in the past known mainly for its contracts with governments, still is seeing consistent double-digit growth in the government business. But, in addition to that, its commercial business is taking off as these customers flock to Palantir's Artificial Intelligence Platform. This platform, harnessing the power of AI, helps customers aggregate and optimize the use of their data -- this may not sound super exciting, but it actually can be a game changer for many.

From Fannie Mae to Citibank

For example, customer Fannie Mae says that through its work with Palantir it now can detect mortgage fraud in a few seconds versus two months, and Citibank says the customer onboarding process now takes seconds instead of several days.

Palantir chief Alex Karp even called the U.S. commercial business "the emerging Core of Palantir" in his recent letter to shareholders. The number of U.S. commercial customers reached 485 in the latest quarter, up from about 14 just a few years ago. And contract value has been soaring in the triple digits quarter after quarter -- in the latest, U.S. commercial total contract value surged 222% to $843 million.

On top of this, Palantir has raised its full-year guidance for total revenue, U.S. commercial revenue, adjusted income from operations, and adjusted free cash flow.

As governments and businesses rush to apply AI to their projects, Palantir could continue to benefit for quite some time -- the AI market is forecast to reach more than $2 trillion early next decade, suggesting there is plenty of room for growth over the long term.

Considering all of this, could Palantir continue to supercharge your portfolio? It's impossible to predict near-term stock performance, and it's likely Palantir will dip from time to time. Stocks never rise in a straight line forever. But it's fair to say that thanks to Palantir's strength in the high-growth area of AI, the company is well positioned to continue delivering significant earnings growth -- and that means that over the long haul, this software player could score a win for investors.