Jim Cramer’s Best Performers List: Top 10 Stocks

3. Palantir Technologies Inc. (NYSE:PLTR)

Cramer acknowledged that Palantir Technologies Inc. (NYSE:PLTR) stock is performing better than Nvidia for the year and attributed the gains to defense contracts.

“CEO Alex Karp talked a big game until the recent quarter when Palantir soared on an amazing, amazing three months. They verified his chest pounding and ratified the stock’s run. It’s now up 253% for the year. Yeah, it’s doing better than Nvidia. The big gains have come from revolutionary Defense Department contracts. They could bring our stodgy military bureaucracy more in the cyber warfare era. By the way, these guys really excel at one thing most definitely, the procurement process.”

Palantir (NYSE:PLTR) is a leading developer of advanced software platforms that specialize in integrating and analyzing complex data to support decision-making. The company has long been known for its work with government agencies, providing critical tools for data-driven operations. In its third-quarter earnings report, it showed strong growth, with revenue climbing 30% year-over-year to reach $726 million.

CEO Alex Karp attributed this growth to the increasing adoption of artificial intelligence (AI) by U.S. government clients. This period also saw a significant increase in the size of the deals the company was securing. The company signed 104 contracts worth over $1 million during the quarter, indicating a rising demand for its services.

Palantir (NYSE:PLTR) saw particularly strong growth within its government business. Revenue from government contracts rose 33% year over year to $408 million, with U.S. government revenue alone surging by 40%, reaching $320 million. This marked the highest growth the company had experienced from its largest customer in 15 quarters. The company’s international government revenue also grew, increasing by 13% year over year to $89 million.