Why Palantir Technologies (PLTR) Surged After Record Q3 and Dubai AI Venture Announcement

• Palantir Technologies reported another record quarter, surpassing analyst estimates with revenue of US$1.18 billion in the third quarter of 2025 and raising its full-year revenue guidance, also announcing the creation of a joint venture in Dubai called Aither to expand AI adoption across key regional sectors.
• The company’s rapid expansion is highlighted by new partnerships with Nvidia and Dubai Holding, underlining Palantir’s role as a leading provider of applied AI solutions to both government and commercial clients worldwide.
• We’ll examine how Palantir’s surge in U.S. commercial revenue and its new Dubai joint venture strengthen its investment narrative for future growth.

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What Is Palantir Technologies' Investment Narrative?

Being a Palantir shareholder today means believing that the company’s rapid expansion in applied AI and data analytics across commercial and government sectors can support sustained above-market growth. The latest news, record earnings, a raised revenue outlook to as high as US$4.4 billion, and the Aither joint venture in Dubai, adds fresh energy to Palantir’s international ambitions and may heighten near-term optimism about new AI adoption. Importantly, while the Dubai announcement positions Palantir even more squarely at the intersection of large-scale digital transformation, it does not appear to shift the market’s top concern: valuation. Despite remarkable growth rates, the stock faces scrutiny for trading at multiples well above industry norms. Recent price declines suggest investors are weighing whether new partnerships and revenue guidance fully justify the current premium, so near-term catalysts still revolve around earnings trends and contract momentum, while a high valuation remains the key risk.

But with shares recently pulling back, questions about valuation risks should not be ignored. Palantir Technologies' share price has been on the slide but might be dropping deeper into value territory. Find out whether it's a bargain at this price.

Exploring Other Perspectives

With 161 fair value estimates from the Simply Wall St Community ranging from US$66 to over US$699, views on Palantir’s worth span nearly US$634, highlighting how opinions can diverge even when growth momentum and valuation concerns are front of mind. This level of debate reflects how closely many are watching short-term catalysts and risk factors that could shape performance. Explore more viewpoints to see where your thinking aligns.

Explore 161 other fair value estimates on Palantir Technologies - why the stock might be worth less than half the current price!

Build Your Own Palantir Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Palantir Technologies research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Palantir Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Palantir Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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