Palantir Technologies (NASDAQ: PLTR) was one of the hottest artificial intelligence (AI) stocks in 2024, and for good reason. Growth accelerated as U.S. commercial clients began adopting the company's Artificial Intelligence Platform while its largest customer,

PLTR stock jumped 340% in 2024 with much of the gain coming after Trump's election win amid views government AI automation will rise.

Palantir Technologies was the best-performing member of the S&P 500 ( ^GSPC -1.11%) in 2024. Its share price surged 340% last year as growing demand for its artificial intelligence platform excited investors. Palantir has grown into a $181.9 billion business, but I think semiconductor comany Arm Holdings ( ARM -2.06%) can top that figure in 2025.

The sale comes as a Morgan Stanley analyst cautioned that Palantir is “trading too far ahead” of its intrinsic value as it looks to take advantage of the generative AI boom.

Palantir Technologies Inc. PLTR stock had an incredible 2024. The company was not only added to the S&P 500 in 2024, but its 340% return made it the index's best-performing stock. The inclusion boosted demand for its shares,