Palantir Technologies, a leading data analytics company, made significant strides in the field of artificial intelligence (AI) in 2023, setting the stage for a promising year ahead. While giants like Microsoft, Alphabet, Nvidia, and Amazon have been dominating the AI landscape, Palantir emerged as a subtle winner.
One of the key highlights of 2023 for Palantir was the release of their new product, the Palantir Artificial Intelligence Platform (AIP). Although it may have been overshadowed by the attention received by big tech investments in AI start-ups, Palantir remained steadfast in its AI vision and achieved impressive early results.
To expand its reach beyond the government sector, Palantir implemented a creative lead generation strategy by hosting immersive seminars called boot camps where potential customers could test and experience their software platforms. This approach aimed to build a substantial sales pipeline at a low cost. As of the third quarter, Palantir reported that 200 companies participated in boot camps, and over 300 organizations deployed AIP. Palantir witnessed a remarkable 23% year-over-year increase in commercial revenue during the same period.
Notably, Palantir’s customer growth rates exceeded 30% while their revenue only increased by approximately 14% through September. This suggests that the full financial impact of the rapid adoption of AIP has yet to be realized. Many investors seem to be discounting the exponential growth potential that Palantir could experience in the future.
Despite being a growth stock with higher volatility compared to established companies, Palantir’s valuation remains attractive. Trading nearly 60% below its all-time highs, Palantir is an AI player that presents a unique opportunity in the market.
In conclusion, Palantir’s success in 2023, fueled by the introduction of AIP and a robust lead generation strategy, positions the company for even greater achievements in 2024. While big tech continues to command attention, investors should not overlook the potential of Palantir in the AI landscape. With strong financial performance and a clear AI roadmap, Palantir is well-positioned for long-term growth. The company may also gain increased support from institutional investors seeking opportunities beyond big tech. This presents an ideal time for investors to consider entering the market and taking advantage of the attractive valuation offered by Palantir Technologies.
