Palantir Technologies Inc. (PLTR): A Bull Case Theory

We came across a bullish thesis on Palantir Technologies Inc. (PLTR) on Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on PLTR. Palantir Technologies Inc. (PLTR)’s share was trading at $80.23 as of Jan 28^th. PLTR’s trailing and forward P/E were 401.15 and 166.67 respectively according to Yahoo Finance.

The rapid decline in AI training costs, exemplified by DeepSeek-R1’s alleged 671 billion parameters at just $5.58 million, signals a major shift in AI accessibility. While skepticism toward China’s claims is valid, the broader trend of delivering more AI power for fewer dollars is undeniable. This directly benefits Palantir, whose digital twin technology thrives on integrating and operationalizing AI insights. As training costs plummet, AI models will scale exponentially, making it easier for organizations to deploy advanced intelligence solutions. Palantir stands to gain the most from this shift, as its platform is designed to harness these models with zero incremental R&D costs, unlocking exponential efficiency gains for its customers.

Rather than stalling AI infrastructure investment, cheaper models will accelerate AI adoption, increasing demand for solutions that optimize and deploy these capabilities. Palantir is positioned at the center of this transition, helping enterprises and governments translate raw AI power into actionable intelligence. As AI models become a commodity, the real value will shift to companies that can extract meaningful insights and drive efficiencies, reinforcing Palantir’s role as an indispensable player in the AI economy. This transition will likely drive significant revenue growth, making Palantir a prime beneficiary of AI’s next evolution.

Palantir Technologies Inc. (PLTR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held PLTR at the end of the third quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.