To The Moon

Is Palantir a Good Stock to Hold Forever?

When we talk about AI stocks, most people immediately think of the Magnificent 7. But beyond those giants, there are other companies with serious AI capabilities — and one that stands out to me is Palantir. Here’s how I see it:

1. Business Model – Government Security Focus

Palantir’s core business has long been with governments, providing mission-critical security and intelligence systems. Once a government locks in such systems, they rarely switch — meaning stable, recurring revenue.

But stability comes with trade-offs:

• Growth is limited by the slow pace of government procurement.

• Talent requirements are strict, making scaling harder.

• Maintenance is expensive, and penalties for breaches are severe.

• Pricing is capped because government budgets are not like consumer markets.

2. Margins & Cost Structure

This stability doesn’t automatically mean sky-high margins. Maintaining these systems is costly, and unlike consumer tech, you can’t sell the same product to millions overnight.

3. AI Development vs. Security Pace

Security always lags behind AI innovation. While AI evolves rapidly, security frameworks require time to adapt. This means Palantir’s “AI hype” moment may arrive later — but when it does, the brand’s trust factor will be a key differentiator.

4. Market Shift – Expanding into Commercial AI

Palantir isn’t standing still. It’s actively shifting into commercial AI with products like Palantir Foundry and AIP (Artificial Intelligence Platform), targeting industries like healthcare, manufacturing, and finance.

• This move diversifies its revenue beyond governments.

• It taps into faster-growing, higher-margin markets.

• It gives them the chance to ride the AI wave earlier, not just through security.

My Take

Right now, Palantir is a high-potential stability stock — stable base from government contracts, plus optionality from commercial AI expansion. I don’t expect it to skyrocket like the hottest AI names in the short term, but over the long run, its brand trust and market shift could make it a reliable compounder.

$Palantir Technologies Inc.(PLTR)$