Palantir’s Valuation Under Scrutiny Despite Remarkable 104% Surge Amidst Rising AI Skepticism
Palantir Technologies stock experienced a modest rebound on Friday, in spite of escalating concerns about its valuation following an impressive 104% surge in 2025. The AI data analytics firm reached an unprecedented high of $207.52 on November 3, but has since been under the microscope with investors questioning its premium pricing.
Publications like The Economist and several analysts have pointed out that Palantir trades at dozens of times forward sales. This makes it one of the priciest names on the S&P 500 and a “poster child for AI exuberance”.
Adding fuel to the fire, Michael Burry, renowned for his role in “The Big Short,” recently revealed put options against Palantir and Nvidia. These options are worth approximately $1.1 billion in notional exposure.
Despite these valuation concerns, Palantir continues to secure significant government contracts. In July 2025, they announced a new Enterprise Service Agreement with the U.S. Army. This agreement establishes a long-term framework for software and data needs. Furthermore, the company has also won contracts for AI-powered supply-chain tools and a contentious ImmigrationOS system for U.S. Immigration and Customs Enforcement.
- Analysts’ Consensus: Hold
- Average 12-month Price Target: $166-167
- Price Range: $50 (low end) to $255 (high end)
The stock remains a battleground with major funds actively trading around volatility. The debate continues among investors about whether AI valuations have become excessive.
Source: ts2.tech