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TechMay 9, 2023

Palantir Surges on Second Consecutive Quarter of Profitability and “Unprecedented” Demand on Its AI Platform

Fiscal Turnaround

Victor Lei

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Companies are increasing their investments into AI — and data analytics company Palantir wants a piece.

Playing the AI card: On its earnings call this week, Palantir hyped up its Artificial Intelligence Platform (AIP) — set to release this month.

AIP can help militaries tap large language models for battlefield intel and decision-making.
Palantir also highlighted more civilian use cases like assisting manufacturers forecast demand and revenue.

Palantir’s CEO Alex Karp says AIP demand is like nothing he’s “ever seen in 20 years of being involved in Palantir” — having “had hundreds of conversations with potential customers about deploying the software.” But AIP isn’t the only thing getting investors excited…

What’s better than AI? AI + Profits…

The seven letters that sent up nearly 20% yesterday. In the first quarter of 2023:

Palantir recorded its second quarter of positive net income ever — and expects to be profitable for the rest of 2023.
Revenue jumped 18%, and its US commercial customer count grew 50%.

Markets have been rewarding companies showing signs of profitability — but several analysts still aren’t buying into Palantir — with William Blair analysts seeing a nearly 50% downside over valuation and growth concerns.

Worried about infusing AI and military defense? Karp says it’s designed with human involvement and oversight — and “the machine must remain subordinate to its creator.”