Is Palantir a Millionaire-Maker Stock?

Palantir (NASDAQ: PLTR), which went public via a direct offering six years ago, opened at $10 per share on its first day of trading. Today, it trades at about $180. That 18-bagger gain would have turned a $60,000 investment into $1.1 million. Let's see why Palantir's stock skyrocketed -- and if it could turn a fresh $60,000 investment into over $1 million again.

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Why did Palantir's stock soar?

Palantir helps government agencies and large companies organize their internal data. By breaking down silos across departments and computing platforms, its Gotham (government) and Foundry (commercial) platforms enable more efficient, data-driven decision-making. Many U.S. government agencies and large companies, including Amazon and Apple, use Palantir to aggregate their data for AI applications.

From 2025 to 2028, analysts expect Palantir's revenue and EPS to grow at CAGRs of 58% and 70%, respectively. That growth should be fueled by the expansion of its U.S. commercial business, new government contracts related to the intensifying geopolitical conflicts, and the expansion of its AI platform (which allows its customers to build custom AI applications).

Palantir's stock isn't cheap at 87 times next year's earnings, but it could still have plenty of upside potential as the AI market expands. I'm not sure it will deliver another 18-bagger gain within the next six years, but it could do so within the next few decades.

Leo Sun has positions in Amazon and Apple. The Motley Fool has positions in and recommends Amazon, Apple, and Palantir Technologies. The Motley Fool has a disclosure policy.