Over the last five monthly reports, artificial intelligence leaders like Alphabet, Amazon.com, Meta Platforms, AppLovin and Broadocom have come on and off the list of new buys by the best mutual funds. But Palantir Technologies has made this screen for five consecutive months.
And as it joins Alphabet, Amazon, AppLovin and Broadcom on the Investor's Business Daily Leaderboard, Palantir stock stands poised to break out to an all-time high. President Donald Trump's recent visit to the United Kingdom could make that happen. Extending an earlier deal, the UK military plans to buy more than $1 billion in Palantir software over five years, Bloomberg reported.
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Ontology And AI Behind Big Demand For Palantir
As a data analytics firm, Palantir serves government and commercial clients. It builds and deploys software platforms that serve as the central operating systems for clients. Ontology, or the study of relationships between entities, forms the basis of its unique software, giving the company a competitive advantage.
From defense and intelligence to health care, finance and supply-chain management, Palantir integrates artificial intelligence across a wide range of industries.
In the latest report on new buys by top funds, leading money managers scooped up $3.75 billion worth of Palantir stock. In the prior four reports, the best mutual funds poured $1.71 billion, $2.45 billion, $3.47 billion and $964 million into the AI juggernaut.
Strong earnings and sales growth remains a key drive of that demand. Over the last three quarters, Palantir has posted average earnings growth of 71.8%. During that time, sales growth has ranged from 36% to 48%. In the second quarter, the company eclipsed $1 billion in revenue.
Analysts see that growth continuing. For the full year, Wall Street forecasts 57% earnings growth to 64 cents per share. In 2026, estimates call for a 29% rise to 83 cents per share.
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Palantir Stock Crafts New Buy Point
Having just completed a six-week cup pattern, Palantir has its sights set on a 190 buy point. On Tuesday, the stock showed resilience to come off the day's lows to gain nearly 2%. A breakout would launch shares to an all-time high.
Since retaking its 10-week moving average in April, Palantir stock has consistently found support along that benchmark line, which has been rising since the beginning of 2023.
After dipping while the current cup pattern took shape, the 21-day exponential moving average has started to poke back above the longer-term 50-day line. Such a move shows rising technical strength.
So as fellow IBD Leaderboard members AppLovin, Alphabet and Broadcom trade at or near their all-time highs and Amazon sets up, see if Palantir stock can add to its gains with a fresh breakout.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
