Finance

Could investing $20,000 in Palantir Technologies stock make you a millionaire?


Here’s a fun fact about November 8, 2016, that you probably already know: It was Election Day. Donald Trump and Hillary Clinton are vying to be the 45th president.

But here’s another fact you may not know: If you invest $20,000 Nvidia Hold the stock that day—and hold it to this day—and you’ll be a millionaire.

NVDA Chart

NVDA Chart

Yes, just investing $20,000 in the right stocks at the right time can benefit your life a lot.

So with that in mind, let’s look at Palantir Technology (NYSE:PLTR) See if it has the same potential.

Surpass other artificial intelligence semiconductors.Surpass other artificial intelligence semiconductors.

Image source: Getty Images.

What does Palantir Technologies do?

Palantir is a leading provider of “big data analytics”. But what exactly does this mean?

Well, Palantir’s business model reminds me of a famous BASF Advertising slogan: “Many of the products you buy are not made by us; many of the products you buy are made better by us.”

In short, Palantir does the same thing, albeit in a very different way. The company uses an AI-powered platform to monitor and analyze data with the goal of identifying patterns and improving processes.

For example, Tampa General Hospital used Palantir’s Foundry platform to reduce patient stay time in the post-anesthesia care unit by 28% through AI-driven data analysis. In addition, AI analysis of nurse scheduling, surgical scheduling and census data also improved operational bottlenecks, and the hospital’s nurse staffing ratio increased by 30%.

Palantir revenue increases as customer base expands

Palantir’s AI platform is popular for its ability to drive real-world results. income Analysts expect the company’s sales to grow to $2.7 billion this year and $3.2 billion in 2025, up from $900 million in 2020 to $2.2 billion last year.

While the majority of Palantir’s revenue comes from government organizations such as the U.S. Department of Defense, the U.S. National Institutes of Health, and the U.K.’s National Health Service, commercial customers are the future (31, 2023), with Palantir’s U.S. commercial customer count surging by 55% year over year %, and its U.S. commercial revenue grew 70% to $131 million.

Can a $20,000 investment be increased to $1 million?

Finally, let’s talk about what makes sense from a stock perspective. Palantir’s stock currently trades at about $25. So for a $20,000 investment to grow to $1 million, the stock price would need to be around $1,250.

Needless to say, this requires an incredible amount of growth. On a compound annual growth rate (CAGR) basis, the stock would need to return 47% per year over 10 years.

Over a more reasonable 20 years, Palantir stock would still need a compound annual growth rate of nearly 22% to turn $20,000 into $1 million.

Despite Palantir’s potential, such expectations may be a little too high.

Still, long-term investors shouldn’t ignore the company. Its artificial intelligence platform could prove to be a real game-changer across numerous industries, and, given time and patience, a modest investment in Palantir stock could still pay off handsomely.

Should you invest $1,000 in Palantir Technologies right now?

Before buying Palantir Technologies stock, consider the following factors:

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Jack Lerkey Worked at Nvidia. The Motley Fool is employed by and recommended by Nvidia and Palantir Technologies. Motley Fool at disclosure policy.

Could investing $20,000 in Palantir Technologies stock make you a millionaire? Originally published by The Motley Fool



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