If You Invested $1K in Palantir at the Beginning of 2025, Here’s How Much You’d Have Now

Palantir (PLTR) has been one of the hottest artificial intelligence (AI) stocks. The software giant is winning government contracts while boosting its commercial sales.

Considering the company’s successes, how has the stock performed in 2025? Here’s a look at what a $1,000 investment made at the beginning of 2025 would look like now.

Also see what a $1,000 investment in the S&P 500 20 years ago would look like now.

Palantir closed at $75.19 per share on Jan. 2, and it closed at $177.29 on Dec. 17. That translates to a gain of about 136% this year, which comfortably surpasses the S&P 500’s return of about 15% over the same stretch.

Palantir’s gains now put its market cap firmly above $400 billion. It’s the 19th-largest publicly traded corporation in the S&P 500. If you had put $1,000 into this company at the start of the year, you would have ended up with more than $2,300.

However, it wasn’t always a smooth ride. Palantir stock saw a significant drop from mid-February to early April. While the stock has recovered and then some, it does reflect how quickly fortunes can change for a growth stock like Palantir. Investors must be willing to hold their shares during periods of significant volatility.

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Many think the AI boom is still in its early stages, and any continued investment in the sector could create more opportunities for Palantir.

Additionally, the AI software giant delivered 63% year-over-year revenue growth in the third quarter, which included 121% growth for its U.S. commercial revenue. Palantir closed hundreds of seven-figure deals in the quarter, with 53 deals of at least $10 million.

It also saw net income of $476 million, resulting in a 40% margin. If Palantir can continue to elevate its margins while delivering high revenue growth, the stock could fit into its high valuation over time.

Palantir stock isn’t for everyone. Value investors will scoff at its trailing price-to-earnings (P/E) ratio of 408.76, but AI investors who are OK with taking some risk and have long-term time horizons may be more suited for this stock. It’s easy to question the valuation, but it is more difficult to question its returns over the past five years.