Is Palantir Stock Possible to Reach Its All-Time High?

A lot of people have been paying attention to Palantir Technologies (NYSE: PLTR) lately. Before branching out to serve enterprise-level companies, the firm's main market was the United States government and its allies for data mining and artificial intelligence (AI).

With the rise of generative AI, Palantir was able to capitalise on its capabilities and create a practical solution for businesses in no time. The subsequent enthusiasm has driven the stock price up 239 percent since the beginning of the year.  

The stock of Palantir reached its all-time high over three years ago, which may come as a surprise to investors. Let's take a look at Palantir's unlikely rise to prominence and the factors that could propel it back up.  

An ideal storm At a time when IPOs were in extremely high demand, Palantir went public on September 30, 2020. Many new stock market investors flocked to the market after the global pandemic.  

Palantir was one of several IPO equities sent soaring by this wave of demand. Palantir Technologies reached a record high of $39 on January 27, 2021, just a few months after its launch. This was a 438% increase from its initial listing price of $7.25  

Palantir stock might reach new heights if generative AI is quickly adopted. Its commercial division in the United States increased by 40% year over year in the first quarter, and the number of its customers increased by 69%. For the entire year, the segment is expected to generate 45% more revenue, or 25% of the total, according to management.  

The stock is trading at over 18 times the forecasted revenues for 2024, with analysts predicting a revenue of $2.7 billion. To maintain a market cap of $87 billion and restore its stock price to $39, Palantir would have to earn around $4.9 billion in revenue, assuming its price-to-sales (P/S) ratio stays the same. Palantir may achieve this goal by the beginning of 2028 if its present revenue growth rate of 21% is sustained.  

Nevertheless, Palantir may reach these heights even sooner if its growth boom persists, which many anticipate it will.