The newsletter writer highlights an “eccentric billionaire” known for his lucrative investments and ties to the PayPal Mafia, network of former PayPal employees who later became establish or support major Silicon Valley firms. While Elon Musk is the best-known member, the focus here is on Peter Thiel, a highly successful early-stage investor.
Now, let’s examine the hints to uncover the $25 Emerging AI Firms that, according to Adam’s order page summary, you might already recognize.
The company in question is Palantir, a $50 billion AI and big data analytics firm co-founded by Peter Thiel and Alex Karp. Thiel holds the position of Board Chair, while Karp leads as CEO. Although it doesn’t match the scale of tech giants like Google or Microsoft, Palantir remains a major force in the industry. Karp, often recognized for his distinctive hairstyle, is widely seen as the public face of the firm.
May 5th is noteworthy because it falls approximately 3 months after Palantir’s most recent quarterly earnings release. As a result, analysts anticipate that the company will announce its Q1 earnings around this time. Last year, the earnings report was published on May 8th, so a similar release window is expected. However, no official confirmation has been made yet.
That’s unlikely. Stocks trading at over 100 times earnings rarely offer just one chance to invest. If you’re looking to invest in Palantir shares at a high valuation, another opportunity will likely arise next year. Whether the stock price stays above or drops lower than the present $23 level will depend on investor sentiment and enthusiasm. As a stock driven by narrative, Palantir’s valuation is heavily influenced by market perception, leading to potential price swings.
How Significant Is Palantir’s First Quarter? Most analysts don’t see Q1 as a particularly crucial period for Palantir. Projections suggest that the company’s performance will closely align with the previous quarter, with revenue surpassing $600 million and EPS on a modified basis reaching eight cents (or three cents under GAAP standards). Rather than relying heavily on government contracts—which, while more profitable, tend to grow at a slower pace—Palantir has been actively expanding its presence in the corporate sector. Although the company could report notable contract wins or strong earnings in May, there’s also a chance that some major clients have scaled back their spending, which could lead to financial results that fall short of expectations.
Investors generally expect increase in revenue to hold steady between 15% and 20%, with any figures surpassing this threshold likely to be unexpected. Alongside this, gradual margin expansion is anticipated, contributing to higher profits, at a minimum on a modified scale. This would translate into earnings growth of roughly 25%. Any substantial deviation from this estimate, whether above or below, could catch investors off guard.
Palantir has frequently been labeled an “AI” company, a characterization notably emphasized from Dylan Jovine throughout the past couple of years. He has highlighted the company’s involvement in aiding Ukraine in military targeting efforts. I recently covered this stock in another teaser campaign, and since then, no significant updates have emerged. As a result, my assessment remains largely unchanged from what I previously discussed.
Palantir is a cutting-edge company that partners in collaboration with numerous government entities and major corporations, offering advanced software solutions for data mining, interpretation, and analysis to support decision-making processes. Their core services fall under AIP, short for AI Platform. However, grasping the full scope of their offerings can be complex, making their website and case studies valuable resources for further exploration.
Originally known as a “big data” firm with a strong focus on government contracts, Palantir has since evolved into a dominant large-scale artificial intelligence firm. Over the past three years, they have significantly expanded their customer base and successfully doubled their revenue. Currently, the company holds a market valuation of $54 billion, with its growth largely driven by the global AI boom.
Palantir is currently trading at 25 times its sales, a more reasonable figure compared to the over 40 times sales multiple seen earlier this year. Analysts forecast adjusted earnings of 33 cents per share for the year, placing its projected normalized earnings valuation at 74 times. As such, confidence in Palantir’s long-term growth potential is key for investors.
Due to its extensive government contracts, Palantir has often been perceived as consulting firm. However, it is steadily transitioning into a full-fledged software company, a shift that is expected to drive higher margins, stronger cash flows, and increased profitability. The company benefits from a highly loyal customer base, with military and security agencies worldwide providing a reliable revenue foundation.
The biggest risk associated with investing in Palantir is its high valuation, which could lead to sharp volatility if sentiment turns even slightly negative. Additionally, CEO Alex Karp remains a divisive figure among investors, given his strong emphasis on defense contracts. However, his ability to effectively communicate Palantir’s vision has played a significant role in the company’s success. With nearly $1 billion in projected normalized cash flow for the current year and a strong cash position, Palantir remains well-capitalized and resilient.
If you’re considering investing in AI stocks like Palantir, it’s crucial to acknowledge both the potential and the risks. Many high-growth companies in this space, including those you own but find overvalued for a purchase at this time, are largely trading on expectations of future AI-driven expansion. This momentum could continue pushing valuations higher, but since these stocks often move as a group, any shift in sentiment could trigger widespread declines.
Having a clear investment strategy tailored to your financial goals is essential. Without one, it’s easy to fall into the common trap of buying into hype at peak valuations and selling in panic during downturns. Market manias have a way of testing even the most experienced investors, so being disciplined in how you allocate capital to speculative plays is key.
For those following Palantir closely, there’s no shortage of both bullish and bearish arguments. If you have strong insights—whether in favor of or against investing in PLTR—I’d love to hear your thoughts in the comments.
Shifting gears, another AI-related company worth watching is Synopsys, a dominant player in semiconductor design tools alongside Cadence Design Systems. Together, these two firms operate as a near-duopoly, each estimated to be worth in the $80–90 billion range and expanding sales at a rate of 10–15% per year, with earnings posting gains in the 20–25% range. Despite their current premium valuations (trading at 40 to 50 times forward earnings), demand remains strong as major corporations ramp up efforts to design custom AI chips and lower dependence on NVIDIA. However, given the semiconductor industry’s historically cyclical nature, investors need to assess whether recent growth trends are sustainable or just part of another boom phase.
While exposure to high-growth AI and semiconductor stocks can be a great portfolio enhancer, relying too heavily on these faith-based investments carries risk—especially if you’ll need liquidity over the coming decade. A well-balanced portfolio includes both aggressive growth stocks and more stable, income-generating assets to weather market fluctuations effectively.
Nice post. I was checking continuously this blog and I’m impressed! Very helpful info particularly the last part 🙂 I care for such info much. I was seeking this certain info for a very long time. Thank you and best of luck.