Key Points
Palantir Technologies will be able to maintain its impressive growth rate over the next five years, becoming a larger player in the artificial intelligence software platform market.
The company’s earnings growth potential suggests it could make investors significantly richer by 2030, even if it trades at a significant discount to its current valuation.
$1,000 investment in stocks Palantir Technologies(NASDAQ:PLTR) five years ago is worth just over $5,500 as of this writing, although it’s worth noting that much of the stock’s gains have come in 2024 and 2025.
During those two years, Palantir shares reached the purple level. Investors bought shares first as the introduction of the company’s artificial intelligence (AI) software platform accelerated its growth. Most notably, Palantir shares soared as much as 935% in 2024 and 2025. However, they have experienced a difficult period in 2026, losing 24% of their value so far.
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Ideally, investing in AI stocks right now may seem like a bad move due to their valuation. But I think it remains a solid long-term investment despite this year’s poor performance. It wouldn’t be surprising to see Palantir stock hit the gas again, making investors significantly richer over the next five years.
Let’s look at why this might be the case.
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Palantir Technologies dominates the fast-growing space of artificial intelligence software platforms.
Palantir’s Artificial Intelligence Platform (AIP) helps organizations connect their own data and operations with AI models. This allows Palantir customers to securely automate operations, make real-time decisions using AI, and eliminate duplication. Organizations can reduce costs, increase sales, or streamline their operations with Palantir’s AIP.
The achievements brought about by the implementation of AIP have helped Palantir record phenomenal growth in its customer base since the launch of the platform in April 2023. The company’s total number of customers at the end of the first quarter of 2023 was 391, and revenue growth for the quarter was only 18%. Another thing worth noting: in the first quarter of 2023, Palantir only had 8 contracts worth $10 million or more.
By comparison, the number of contracts worth more than $10 million rose to 47 in the first quarter of 2026. The company’s total number of customers jumped to 1,007, and revenue growth accelerated to 85%. Another notable point is that Palantir’s total contract value (TCV) increased 61% year over year in the first quarter of 2026 to $2.4 billion. This is significantly higher than the $397 million TCV the company reported in the first quarter of 2023, before the launch of the AIP.
So, it’s clear that AIP has changed Palantir’s business. Larger contracts, a growing customer base and continued growth opportunities in AI software platforms have increased the company’s revenue and earnings.
YCharts data
The good news for investors is that the market for artificial intelligence software platforms that Palantir serves is expected to grow at a healthy rate over the long term. By one estimate, the market for software platforms for generative artificial intelligence was worth just $19 billion in 2024. Palantir reported a 29% increase in revenue in 2024 to $2.9 billion, indicating that it controlled just over 15% of that market.
However, Palantir’s growth rate has accelerated, as evidenced by revenue growth in the first quarter. That’s why I believe AI stocks could deliver meaningful returns by 2030 as they become increasingly dominant in the high-yield market.
What kind of growth potential can investors expect by 2030?
A third party estimates that generative AI software platforms will see annual growth of 29% through 2034. Meanwhile, Palantir’s revenue is projected to nearly double this year to $7.72 billion. Moreover, Palantir’s remaining deal value (RDV), which represents the total value of contracts still to be executed at the end of the quarter, nearly doubled in the first quarter to $11.8 billion.
As such, Palantir has a robust revenue pipeline that should ensure its phenomenal growth continues over the long term. Assuming Palantir’s revenue grows 50% per year between 2026 and 2030, given its growing market share in artificial intelligence software platforms, its revenue could reach $39 billion in five years (with this year’s estimated revenue of $7.72 billion as a base).
If the growth company’s shares traded at 15 times then-sales, a significant discount from its current price-to-sales ratio of 62, its market capitalization could jump to $585 billion. This implies an upside potential of 92% over the current market capitalization. However, I wouldn’t be surprised if Palantir generates big profits, as its above-average growth should ideally be rewarded with a premium valuation.
Thus, it would make sense for Palantir investors to continue to hold this growth stock over the next five years as it could emerge from the recent decline and soar higher.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has a position in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
