Wall Road wrote off Palantir as too costly. Retail buyers cannot get sufficient

Kyle Dijamco is a proud member of Palantir Applied sciences‘ fast-growing retail investor base.

The Los Angeles-based marketer has guess large on the protection tech inventory, even growing his publicity after a drawdown earlier this 12 months. The 31-year-old’s place now stands at roughly $25,000.

“It is an thrilling inventory to personal,” Dijamco informed CNBC.

Dijamco is a part of a military of mom-and-pop merchants who’ve poured billions of {dollars} into the Denver-based firm’s shares in 2025, in line with knowledge from VandaTrack. Its monster positive factors over latest years amid the substitute intelligence increase has made the inventory an indeniable star of the retail investing world, despite Wall Road’s reservations about valuation.

Particular person buyers have been on observe to purchase almost $8 billion in Palantir inventory on steadiness in 2025, per Vanda knowledge as of Dec. 8. That could be a acquire of greater than 80% over the prior 12 months, and it displays a rise of over 400% from 2023.

Palantir is on tempo to be the fifth-most purchased safety on steadiness for the 12 months, Vanda knowledge reveals. The inventory sits behind solely megacap names like Tesla and Nvidia and fashionable exchange-traded funds such because the SPDR S&P 500 ETF Belief (SPY), which tracks your complete U.S. market benchmark.

“It has been nice,” stated Viraj Patel, deputy head of analysis at Vanda, which tracks retail dealer flows. ​​”Palantir has form of been introduced into this group of AI-tech poster [children].”

Palantir has gained the hearts of retail buyers amid its takeoff as a inventory. Its shares have surged greater than 150% thus far in 2025, putting the identify on observe for its third straight 12 months with triple-digit positive factors.

The inventory has skyrocketed almost 3,000% within the final three years, crushing the S&P 500‘s roughly 80% acquire and the technology-heavy Nasdaq Composite‘s greater than 120% climb in the identical timeframe.

Since its 2020 market debut, Palantir has been thought of a mysterious enterprise given its enterprise with each private and non-private entities.

On the floor stage, Palantir helps each governments and main companies manage their knowledge. Past being considered as a beneficiary of the push to undertake AI, it is seen as a winner underneath the Trump administration’s priorities of accelerating federal authorities effectivity and bolstering nationwide protection.

“The joke for some time has all the time been like, ‘What does Palantir even do?'” stated Paxton Earl, an funding banker with a concentrate on software program who started studying regulatory studies to raised perceive the corporate. After studying extra, he remembers considering: “That is really an insane enterprise. It is actually good.”

Earl found by way of analysis that the corporate’s income was extra diversified past army work than he initially predicted. As well as, the 23-year-old discovered Palantir labored with consumer-facing manufacturers he knew like Ferrari and Wendy’s.

The San Diego resident stated he picked up extra shares following the corporate’s third-quarter earnings report in early November. Palantir tanked 16% that month as buyers dumped their AI performs on valuation fears, and the inventory posted its worst month-to-month efficiency in additional than two years.

Wall Road largely chalked up the sell-off to profit-taking and broader considerations in regards to the well being of the AI commerce. Vanda discovered the majority of Palantir’s retail shopping for came about within the first 9 months of the 12 months, then cooled off as rising fears of an AI bubble left buyers questioning the commerce.

Palantir has gone out of its approach to courtroom particular person merchants like Earl.

Whereas different well-known firms sometimes reserve the question-and-answer parts of earnings requires Wall Road analysts or journalists, Palantir additionally takes inquiries from retail buyers. In an annual video shared from a ski path late final 12 months, CEO Alex Karp particularly shouted out these small shareholders.

“Exceedingly grateful to all of you particular person buyers who took the time and alternative, and had the braveness to look previous standard, rusty, crusty platitudes,” Karp stated, whereas was sporting reflective goggles and gripping ski poles.

The inventory has develop into a sizzling subject on the favored WallStreetBets Reddit discussion board. On a number of days in 2025, it was probably the most talked about inventory on the dialogue board, in line with meme inventory monitoring agency Breakout Level.

Palantir “has been a long-standing WallStreetBets romance,” stated Ivan Ćosović, managing director at Breakout Level. “They adore it.”

Wall Road hasn’t jumped on board with the identical fervor as the common Joe. The typical analyst polled by LSEG has a maintain score, with a number of citing apprehension in regards to the inventory’s a number of.

The corporate’s valuation has made its inventory a “non-starter” for institutional shoppers, in line with Gil Luria, head of expertise analysis at D.A. Davidson. Palantir has a a number of of round 450 occasions trailing earnings, working circles across the S&P 500’s common of shut to twenty-eight.

Alternatively, Luria stated retail buyers are doubtless impressed by Palantir’s “bold” mission to play a task in defending the U.S. These on a regular basis buyers are doubtless additionally enticed by Karp, who Luria stated is much like Tesla CEO Elon Musk in his capability to promote a enterprise imaginative and prescient. Nonetheless, Luria stated Karp hasn’t attracted the identical quantity of controversy.

Luria stated Palantir additionally attracts parallels to Tesla’s inventory 10 years in the past, when the carmaker was presenting an electrical vehicle-focused future. Tesla shares have soared about 3,000% prior to now decade, whereas the S&P 500 has gained greater than 230% in the identical interval.

The query, Luria stated, is that if the retail crowd who backed Tesla a decade in the past are proper as soon as once more about Palantir.

The analyst stated Palantir’s earnings outcomes have been largely robust over the past a number of years. Palantir’s second-quarter report in August — by which the corporate topped the Road’s estimates and raised its full-year steering because of the AI increase — left him questioning if the inventory is price leaping into regardless of the lofty a number of.

“Even us most jaded, outdated, stodgy Wall Road analysts have been bowled over by the extent of success,” Luria stated. “It was such a staggering success that I needed to rethink all the things I knew.”

Scion Asset Administration — the now-de-registered fund run by “The Huge Quick” investor Michael Burry — revealed bets in opposition to Palantir and fellow AI darling Nvidia within the third quarter. Karp informed CNBC that Burry’s transfer was “bats— loopy.”

Retail buyers are undeterred by the wariness amongst their institutional counterparts. As Breakout Level’s Ćosović put it: the place Burry sees “overvaluation,” WallStreetBets sees “future.”

Palantir has had its fair proportion of choppiness this 12 months, falling greater than 10% on a number of single buying and selling days. However for stakeholders like Dijamco, the California-based marketer, these fluctuations present cheaper entry factors to purchase into a reputation that they consider in.

“You form of develop into a bit bit desensitized to the worth swings,” stated Dijamco, who plans to buy 1000’s of {dollars}’ price of further shares on the subsequent large downturn. “I simply have that conviction that it may do effectively.”