Feb 6, 2024 - Business

Charted: Palantir the latest AI canary

Data: S&P Capital IQ; Chart: Axios Visuals
Data: S&P Capital IQ; Chart: Axios Visuals

Palantir Technologies is reaping a surge of AI-related revenue earlier than anticipated, Nathan writes.

Why it matters: The company's sales jump — reported after yesterday's closing bell — illustrates how quickly artificial intelligence is lifting the tech sector to new heights.

Driving the news: Fourth-quarter revenue for the data-analytics company rose 20%, compared with a year earlier, which included a 70% jump in U.S. commercial revenue.

  • Its U.S. commercial revenue increase was "eye popping," Wedbush Securities analyst Dan Ives wrote in a research note, adding that AI is driving "deal flow to a level we did not expect until 2025."

Zoom in: Bank of America analyst Mariana Perez Mora called its performance "a sign of Palantir's unique position as an enabler of AI-powered data-driven decision making in a tangible, accessible, and operational way."

The impact: Palantir's stock soared 30.8% to $21.87 today.

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This story was an excerpt from Axios Closer, a recap on the day's biggest business stories.

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