Palantir delivered its first-quarter 2025 earnings report in early May. Revenue grew 39% year over year, with U.S. commercial sales up 71% and U.S. government sales up 45%. That's along with a 39% increase in total customer count year over year, and an 8% quarter-to-quarter gain.

An impressive surge in the past few months has boosted Palantir stock to extremely expensive valuation levels. Palantir's potential to gain a bigger share of the AI software market could propel the stock higher despite the negative sentiment.

Palantir Technologies stock just hit another record, but the lofty valuation of the defense-focused artificial-intelligence software company has analysts questioning whether it can go much higher. Palantir stock fell 1.