Palantir: A Potentially Undervalued AI Stock (NYSE: PLTR)

Big data analytics company Palantir Technologies Inc. (NYSE:PLTR) has experienced a surge in share price since the start of May, doubling its value and boasting a market cap of over $30 billion. Despite this growth, the company is still undervalued, offering investors the potential for continued strong performance. With an adjusted operating margin of 24% and a free cash flow (FCF) margin of 36%, the company’s ability to generate revenue and FCF growth is significant. It is also capturing the attention of enterprise customers in the AI space, and its recent $463 million contract with the US Special Forces for AI demonstrates its strength in directly selling AI to customers. Palantir has been able to acquire new customers and grow relationships with existing ones, enabling it to generate top-level annual revenue of over $1 billion. Although the company will need to continue growing its cash flow to justify its current valuation, Palantir’s prospects for long-term sustainable growth make it a valuable investment opportunity.