If the hype surrounding AI fades, Palantir’s shares will have a lot further to fall. Even if that happens, however, Palantir’s business will survive. It is going from strength to strength. Revenue in the quarter from July to September was up by 63% year on year.

Gen Zers are currently graduating from Palantir’s Meritocracy Fellowship, as CEO Alex Karp calls his company "the best credential in tech."

Palantir has seen demand for its software soar in recent quarters, and that’s translated into enormous revenue growth. The company also has done an outstanding job of balancing revenue growth with profitability.

Meanwhile, Veteran analyst Stephen Guilfoyle credits Palantir’s growth to strong fundamentals, noting, “Sales are running wild as are margins. The commercial business is exploding. Cash flows are not just robust; they are enormous. The balance sheet is simply the greatest balance sheet I can remember seeing. The CEO is focused and aggressive.”

An investor famous for betting against the housing market before it collapsed now has his sights on companies at the forefront of the AI boom.

"We are yet again announcing the highest sequential quarterly revenue growth guide in our company's history," Co-Founder and CEO Alex Karp said, framing the quarter as further evidence of AIP's ability to leverage the power of AI for its customers.

Palantir Technologies' valuation is detached from its fundamentals, making its risk/reward profile deeply unattractive. Click here to read why PLTR is a Sell.

The company said its sales were $1.18 billion in the third quarter for a year-over-year growth rate of 63%.

Palantir stock sold off after earnings despite solid results, while comments from bank CEOs have raised concerns about a more severe pullback.

Palantir Technologies fell around 6% on Tuesday as a strong quarterly update from the company failed to extend its record-breaking rally.

Shares of Palantir fell more than 8% after market open on Tuesday, leading a broader market decline after the software firm reported better-than-expected earnings, as some economists warned of “rally exhaustion” after a meteoric rise for several stocks this year.