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Prediction: This Supercharged Growth Stock Will Soar 169% by 2028

Prediction: This Supercharged Growth Stock Will Soar 169% by 2028

Author:
foolstock
Published:
2025-09-04 19:02:00
5
1

BREAKING: Hidden crypto gem poised for massive 169% explosion within three years—while traditional finance scrambles to catch up.

The Growth Engine Nobody Saw Coming

Forget everything you know about conventional investment timelines. This digital asset isn't just climbing—it's rewriting the rulebook on exponential returns. While Wall Street analysts debate quarterly earnings, this powerhouse quietly builds infrastructure that bypasses legacy systems entirely.

Numbers Don't Lie: 169% Surge Ahead

By 2028, early adopters could see nearly triple returns as adoption accelerates. The math works because the technology actually solves real problems—unlike most financial products that just move fees around.

Why Traditional Finance Hates This Story

Bankers love complexity—it lets them charge for 'management.' This asset cuts through the nonsense with code that executes flawlessly 24/7. No middlemen, no excuses, just pure performance that would make any hedge fund blush—if they could even understand it.

Final Take: Bet on infrastructure, not promises. While the suits debate their spreadsheets, the blockchain keeps grinding out blocks. Sometimes the best investment strategy is simply holding what actually works.

A person looking at graphs and data on a see-though computer display.

Image source: Getty Images.

Decades of AI expertise

Years before the company went public, Palantir had been toiling away on advanced AI algorithms for defense and intelligence agencies within the U.S. government. In recent years, the company has also focused on enterprise software that saves businesses time and money.

But it was Palantir's Artificial Intelligence Platform that catapulted the company to AI stardom, as the system leverages generative AI to develop real-time solutions to company-specific problems.

The two biggest stumbling blocks to adopting AI are knowing exactly where to begin and getting a solid return on investment (ROI). Palantir was able to solve both of those challenges with a simple strategy.

Palantir invites developers and business leaders to attend "boot camps," or workshops that show AIP in action. During these interactive sessions, users work side-by-side with Palantir engineers to develop solutions to their real-world business problems.

This strategy is a clear winner. In the second quarter, Palantir's revenue of $1 billion climbed 48% year over year and 14% sequentially. The star of the show was its U.S. commercial revenue, which surged 93% to $306 million, representing nearly 31% of total revenue, fueled by ongoing demand for AIP. This resulted in adjusted earnings per share (EPS) of $0.16, which surged 78%.

The segment ended the quarter with contract value of $843 million, up 222% year over year. This helped drive Palantir's remaining performance obligation (RPO) -- or contractually obligated sales that aren't yet included in revenue -- up a whopping 77% to $2.4 billion.

Palantir also boosted its full-year guidance, forecasting at least 85% growth for the U.S. commercial segment (namely AIP) for 2025, up from its previous outlook for 68% growth.

The path to $1 trillion

Palantir's decades of experience and its groundbreaking AI solutions have created a windfall for shareholders, and there could be much more to come.

According to Wall Street, Palantir is expected to generate sales of $4.1 billion in 2025, giving it a forward price-to-sales (P/S) ratio of about 89 (not a typo). Assuming its P/S remains constant, Palantir WOULD have to generate revenue of more than $11 billion annually to support a $1 trillion market cap.

Wall Street is forecasting annual revenue growth of 38.7% for Palantir over the next five years. If the company is able to grow at that pace, it could reach a $1 trillion market cap by 2028. But if Palantir's sales and profit growth continue to accelerate, it could achieve that benchmark even sooner.

I'm not the only one who thinks so. Wedbush analyst Dan Ives has run the models and calculated that Palantir's market cap could hit $1 trillion sometime in 2027 or 2028. Ives argues that investors focused solely on valuation have missed "every transformational tech stock over the past 20 years." He goes on to say that AI will be the driving factor behind Palantir's success.

Palantir's operational and financial trajectory seems to back up that assertion, as the company continues to announce new and larger customer wins and its sales and profits continue to accelerate.

Every rose has its thorns

Lest there be any doubt, and as promising as Palantir is, there are also plenty of things that could go wrong. The development of AI could stall, the economy could hit a rough patch, or Palantir could fail to capitalize on the tremendous opportunity that is AI -- and any of these could send the stock careening lower. Let's not forget the company's valuation, which is extreme, to say the least.

Palantir is currently selling for 66 times next year's sales and 184 times next year's earnings. History shows that the higher the multiple, the more extreme the volatility, and Palantir isn't immune. Investors should prepare themselves for significant stock price movements, which aren't for the faint of heart.

Estimates abound for the potential of generative AI, but the software opportunity alone is intriguing. Cathie Wood, founder and CEO of Ark Investment Management, suggests that if software purveyors are able to capture 10% of the value created by their AI-focused products, it could generate as much as $14 trillion in revenue in 2030.

If Palantir continues along its current trajectory, helping companies drive positive ROI for their AI spending -- and I believe it can -- it could achieve a $1 trillion market cap sooner than many expect.

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