Artificial Intelligence Stocks Palantir (NASDAQ: PLTR) has been on my watchlist for years. However, I never bought it because of the high price.

However, with the company’s shares recently falling more than 35% from their highs, the valuation has dropped significantly. So I decided it was finally time to pull the trigger and jump on the Palantir bandwagon.

A true beneficiary of AI

Palantir’s incredible growth was a key factor behind my investment decision. It is a technology company that is benefiting greatly from the AI ​​revolution.

Just look at the latest Q4 results. For the quarter:

• Revenue increased 70% year-over-year to $1.4 billion
• U.S. revenues increased 93% to $1.1 billion
• U.S. commercial revenues increased 137% to $507 billion

I can’t remember the last time I saw an established company escalate its profits by 70% year over year. This is quite unheard of.

It is worth adding that in 2026, the company expects revenues to escalate by 61%. It’s amazing.

But it’s not just about the top-shelf story. Profits will also skyrocket.

In the fourth quarter, net income attributable to common stockholders increased 670% year over year to $609 million. Meanwhile, the company’s Rule of 40 score (revenue growth plus operating margin) was 127 (again, almost unheard of).

These results suggest that we are dealing here with a very unique company. This is not your average software company.

“Our customers are not pre-trialing AI. They are engaging in it at scale, and Palantir is the driving force.”
Ryan Taylor, Palantir’s chief revenue officer and chief legal officer

Salary information requires visibility

While reading the transcript of the fourth quarter earnings calls, one part stood out to me. This was a quote from the director of a construction company who said: “We’ve gone so far that every other software has to justify its existence, and so far that hasn’t been possible. Ontology is the secret weapon. Nothing else comes close. And we’re not just getting rid of third-party software; we’ve replaced their functionality, and then beaten them to new features, all within a year, because of ontology.“

Of course, this is only the opinion of one company. However, this suggests that Palantir has a powerful product.

Palantir’s “ontology” is essentially the translation of data into understandable concepts. It enables users (humans and AI agents) to make decisions directly within the platform.

A tiny purchase for me

Now I will point out that my share purchase was very tiny. Right now, Palantir is one of the smallest holdings in my portfolio.

I started tiny for a few reasons. One of them is the decline in share prices – the downward trend may continue.

Another issue is that the company’s shares are still priced for very high growth (price to earnings ratio (P/E) is around 100). However, there is no guarantee that mighty growth will continue.

However, in the long run, I see great potential. I intend to continue buying shares when share prices weaken and build my position over time.