Missed Palantir’s Huge 100% Run in 2025? These Stocks Could Be Next

The extraordinary performance of Palantir Technologies (PLTR) in 2025 has captured the attention of investors, with its stock experiencing a surge exceeding 100% year-to-date in many reports. This remarkable ascent has naturally led to a search for the “next Palantir” – companies poised for similar explosive growth. However, the underlying principles driving Palantir’s success, primarily an increase in valuation, are applicable across the market, suggesting that potential for rapid gains exists in various sectors. The current market environment, characterized by enthusiasm for artificial intelligence (AI) and data analytics, presents a fertile ground for identifying stocks with the potential to replicate Palantir’s trajectory, though caution regarding inflated valuations is warranted.

The Palantir Playbook: Growth and Valuation

A key takeaway from the analysis of Palantir’s run is that substantial revenue growth, coupled with market enthusiasm, can drive significant stock appreciation. Nvidia (NVDA), frequently cited as a benchmark for high-growth tech companies, demonstrates this principle. When Nvidia was tripling its revenue, its price-to-sales ratio remained comparatively reasonable at 46 times sales. This contrasts with Palantir’s current valuation, which, at times, has reached a staggering 123 times sales, making it the most expensive stock in the S&P 500. This disparity highlights a crucial point: while Palantir’s growth is impressive, its valuation raises concerns about sustainability and potential for a correction. The search for the “next Palantir” shouldn’t solely focus on growth rate, but also on relative valuation. Companies exhibiting strong growth at more reasonable multiples may offer a more compelling risk-reward profile.

Potential Contenders: Who’s Next?

Several companies are being touted as potential successors to Palantir’s success. The Real Brokerage (REAX) is gaining traction due to its rapid agent acquisition, with a 61% year-over-year increase in the first quarter of 2025. This growth is fueled by lower costs and improved software tools attracting agents. Similarly, AppLovin, alongside Palantir, is identified by some analysts as a well-positioned beneficiary of the AI boom. Taiwan Semiconductor Manufacturing (TSMC) is also highlighted, benefiting from the increasing demand for semiconductors essential for AI applications, having nearly doubled in value in 2024. However, it’s important to note that identifying these potential candidates doesn’t guarantee similar returns. Each company operates in a unique market with its own set of challenges and opportunities. Furthermore, the sheer magnitude of Palantir’s surge may be difficult to replicate, particularly given the current market conditions and heightened investor scrutiny. AngloGold Ashanti, while outperforming Palantir in 2025, is not necessarily poised for the same level of growth, with Wall Street offering limited positive upside potential.

Beyond the Hype: A Broader Trend

Beyond specific company recommendations, a broader trend is emerging: the focus on AI-driven growth. Companies like IBM, ASML, and Salesforce are making significant investments in AI, positioning themselves for long-term success. These established players, with robust business models and substantial resources, may offer a more stable path to growth compared to smaller, more speculative companies. However, even within the AI space, caution is advised. Some analysts argue that Palantir’s expectations are already “baked into” its stock price, suggesting that investors should explore alternative AI stocks with more attractive valuations. The key lies in identifying companies that are not only benefiting from the AI revolution but are also trading at reasonable multiples of their earnings or sales. Pagaya, for example, is presented as a potential candidate, mirroring Palantir’s trajectory, though its success is not guaranteed. Palantir’s own platforms, Gotham and Foundry, are considered crucial to its income, and similar focus on core product driving revenue is a characteristic to look for in potential successors. The recent surge in Palantir’s stock, with a 1600% gain over three years and a 100% run since the start of 2025, serves as a reminder of the potential rewards – and risks – associated with high-growth investing.

The Bottom Line

Ultimately, the pursuit of the “next Palantir” requires a nuanced approach. While the company’s success provides valuable lessons about the power of growth and market sentiment, investors must avoid blindly chasing returns and instead focus on fundamental analysis, valuation, and long-term potential. The market is replete with opportunities, but identifying the truly exceptional companies requires diligence and a clear understanding of the underlying dynamics driving their growth. The historical performance of Palantir, while impressive, doesn’t guarantee similar outcomes for other stocks, and a healthy dose of skepticism is warranted, especially given the current high valuations in the tech sector.