$Palantir (PLTR.US)$ Recently released a strong third-quarter financial report and once again raised annual revenue guidance.

The stock surged more than 23% to hit a record high last night, up nearly 198% year-to-date, ranking second in the S&P 500 components in terms of gains, exceeding the 181% increase so far this year. $NVIDIA (NVDA.US)$ This year's cumulative increase of 181%, temporarily lagging behind electrical utilities supplier with about a 219% increase. $Vistra Energy (VST.US)$ The sharp rise in Palantir's stock price mainly comes from several aspects, including surging demand for AI, significant increase in revenue from USA commercial and government business, inclusion in the S&P 500 index, and possibly also benefiting from some 'Trump trades'.

The sharp rise in Palantir's stock price mainly comes from several aspects, including surging demand for ai, significant increase in revenue from usa business and government business, inclusion in s&p 500 index, and possibly still benefiting from some 'Trump trades'.

It's worth noting that the current leading companies in the s&p 500 index are all actively involved in the AI race in different ways.

Nvidia is currently the biggest winner in the "AI boom", with AI driving the "nuclear power revival," boosting Vistra's stock price all the way up. Palantir, which was only recently added to the s&p 500 index in September, is one of the few companies already monetizing AI. By providing military AI as a core capability, leveraging defense cooperation with the government as a competitive barrier, attracting major AI model companies with a good reputation, and offering customized AI and data services. In the entire U.S. stock market, there may be only Palantir with such strong scarcity.

AI demand surges! Q3 revenue exceeds expectations and raises full-year performance guidance.

The financial report shows that Palantir's third-quarter revenue was $0.726 billion, a 30% year-on-year increase, with a significantly increased growth rate compared to the previous quarter; net income was $0.144 billion, hitting a historical high; EPS under non-GAAP was $0.10. Among them, the company's U.S. government business grew significantly by 40% year-on-year to $0.32 billion, well above expectations; U.S. commercial business grew by 54% to $0.179 billion.

While revenue and profit both exceeded expectations, Palantir has raised its full-year growth guidance three times this year, citing high demand for its AI software in the U.S. Management expects Palantir's full-year revenue to be between $2.805 billion and $2.809 billion, operating profit adjusted to be between $1.05 billion and $1.06 billion, and U.S. commercial revenue expected to exceed $0.687 billion, all higher than analyst expectations. Based on the third-quarter performance, the fourth-quarter growth rate is expected to continue to rise significantly.

Meanwhile, Palantir's CEO Alex Karp wrote in a letter to shareholders: "Our business is accelerating, our financial performance has exceeded expectations because we are meeting the strong demand of the U.S. government and commercial customers for the most advanced AI technology." "The world is in the midst of an AI revolution driven by the United States, a revolution that is reshaping industries and economies, and we are at the center of this revolution."

Will Trump's victory continue to boost stock prices?

According to reports, U.S. Republican presidential candidate Trump announced his victory in the 2024 presidential election in the early hours of the 6th.

And the usa market remains the "home base" of palantir's operation at the moment, with government business being a key driver of its revenue growth. Different parties in power have drastically different attitudes towards defense spending budgets. The republican party has always supported high military spending budgets, and the military spending growth during Trump's first term was particularly pronounced because of his emphasis on "America first" and a tendency to expand military capabilities in the face of international challenges.

In addition, Peter Thiel, the founder of palantir and a top venture capitalist in Silicon Valley, publicly expressed his support for Trump many years ago. After Trump was first elected, he briefly served in an informal advisory role and provided important financial and public support for Trump's campaign.

Therefore, after Trump's victory in the usa presidential election, palantir's government business may continue its strong growth momentum.

There is a significant difference of opinion on palantir's future prospects on Wall Street.

Some analysts are cautious about palantir's high valuation. Analysts from royal bank of canada have expressed their inability to explain why palantir is the most expensive company in the software industry, with an excessively high projected pe ratio far above the industry average. If performance does not significantly exceed expectations and improve short-term growth trajectory, the valuation seems unsustainable.

Some institutions hold a more optimistic view, DA Davidson analyst believes that the continuous demand for artificial intelligence solutions in the USA, and the revenue growth is accelerating. Palantir remains in a favorable position and can benefit from the surge in corporate interest in AI applications. Compared to other companies (excluding nvidia), Palantir can be a role model for those companies who wish to integrate AI into their products but are unsure how to do so.

After palantir's performance announcement, Goldman Sachs cancelled its previous shareholding downgrade rating and pointed out that palantir's third-quarter performance significantly exceeded expectations, highlighting the company's positioning in artificial intelligence and the "explosive growth" of revenue.

Editor/rice