Palantir Technologies has become one of the most heavily bought stocks among retail investors in 2025, even as Wall Street analysts warn that its valuation is stretched. Individual investors were on track to buy nearly $8 billion of Palantir shares this year.
Palantir’s stock has surged more than 150% in 2025 and nearly 3,000% over the past three years, fueled by enthusiasm around artificial intelligence, government contracts and national security spending. That performance has made it a favorite among everyday traders, placing it alongside megacap names like Tesla and Nvidia in retail popularity.
Wall Street, however, remains cautious. Analysts surveyed by LSEG mostly rate the stock a hold, pointing to its valuation of roughly 450 times trailing earnings — far above the broader market. Some institutional investors have avoided the shares altogether, calling the multiple difficult to justify despite strong revenue growth.
Retail investors see things differently. Many view Palantir as a long-term winner in AI, defense and government efficiency, and are drawn to CEO Alex Karp’s outspoken style and direct engagement with small shareholders. The stock is also a frequent topic on the WallStreetBets forum, where supporters frame volatility as an opportunity to buy more.
Skeptics, including “Big Short” investor Michael Burry, have placed bets against Palantir, citing overvaluation. But retail buyers remain undeterred, arguing that Palantir’s earnings momentum and role in the AI boom justify the risk.
The divide highlights a broader tension in today’s market: while professionals worry about multiples and bubbles, retail investors are betting that Palantir’s story — like Tesla’s a decade ago — will ultimately prove them right.
