One of the proven construction methods generational wealth invests. Whether it’s real estate, commodities, or the stock market, investing in strong asset classes can help you turn a modest amount of money into a healthy amount of long-term liquidity.
Some of the most lucrative investments in modern history have come from technology. With artificial intelligence (AI) currently generating excitement in the technology sector, investors are surely wondering whether they should get in on the action. More importantly, you may be wondering which companies are becoming true leaders in AI.
Palantir Technologies (NYSE:PLTR) is a data analytics platform that sells software to the U.S. government and its Western allies as well as commercial companies.
Last year, Palantir shares soared 167% on the heels of the company’s forays into AI. This momentum has continued into 2024, with shares up another 25% so far this year.
Given Palantir’s stock’s meteoric rise, it’s natural to wonder if the company will be the next millionaire.
Let’s take a look at Palantir’s business and analyze why it’s a smart choice for long-term investors. After taking a close look at the themes currently fueling Palantir, it should become clearer whether owning stocks can help you become a millionaire.
How Palantir struck gold in 2023
The last few years have been quite volatile for the software market. Unusually high inflation and a series of interest rate hikes from the Federal Reserve have impacted businesses of all sizes.
As companies cut budget spending, companies like Palantir experienced a slowdown in growth. The stock hit an all-time low of just $6 in December 2022. However, last year the company rebounded strongly as AI euphoria spread throughout the tech sector.
Last April, Palantir launched its fourth core software suite: the Artificial Intelligence Platform (AIP). The problem? Palantir has been overshadowed by a slew of headline-grabbing investments from big tech stalwarts such as Microsoft, AmazonAnd Alphabet.
Palantir employed an unconventional lead generation strategy simply called “Bootcamps.” These are essentially immersive training courses during which potential customers can test Palantir’s various software services. The main objective of these seminars is to helping businesses form an AI-anchored use case.
This strategy has worked so far, as evidenced by Palantir’s accelerated customer adoption. Last year, the company increased its overall number of customers by 35%. Additionally, revenues from U.S. private sector customers increased 70% year-over-year in the fourth quarter.
Is Palantir a good long-term investment?
Many companies are looking to capitalize on the AI narrative. But as with other growth opportunities, there are likely to be only a limited number of winners in the long term.
One of the most attractive aspects of Palantir is the company’s consistent profitability. Lots of strong growth…
