Palantir Joins U.S. Corporate Giants as AI Hype Sends Stock Soaring

Palantir Technologies (PLTR, Financials) has officially made it to the big leagues. Shares climbed another 2% on Friday, lifting the company's market value to $375 billion.

That's a huge leap for a company that was once viewed as a niche government contractor. But 2025 has been a breakout year. Investors can't seem to get enough of Palantir's artificial intelligence pitchespecially as defense spending and national security tech grab headlines.

The numbers have helped the story. Palantir's U.S. government revenue jumped 45% last quarter to $373 million, while total revenue climbed 39% to $884 million. Next earnings are due August 4.

But while the hype is real, so is the price tag. Palantir trades at a sky-high 273 times forward earnings, making it one of the most expensive stocks in the market. For context, Tesla is around 175x. And despite the valuation, Palantir's total revenue over the past year is just $3.1 billiona fraction of Mastercard's $29 billion, even though Mastercard is only slightly more valuable.

Still, the company's trajectory is undeniable. Founded in 2003 by Peter Thiel, Alex Karp, and others, Palantir has steadily built a name for itself in national security and enterprise data. Now it's playing in the same arena as the world's most influential companies.

Whether it can grow into its valuation is a different question. But for now, investors are betting that in a world driven by AI, Palantir's story is just getting started.