Bank of America revamps Palantir stock outlook after AIPCon

Tue, Sep 9, 2025, 11:33 AM 4 min read

MIT NANDA's paper, "The GenAI Divide: State of AI in Business 2025," released in July, has worried many investors.

The report said that despite $30 to $40 billion in enterprise investment into generative artificial intelligence development, 95% of organizations are getting zero return.

This statistic sparked fears that the AI bubble is about to burst.

If there's a company that doesn't need to worry about successfully leveraging its AI, it's Palantir.

NANDA paper states: "The primary factor keeping organizations on the wrong side of the GenAI Divide is the learning gap, tools that don't learn, integrate poorly, or match workflows."

Palantir seems to have predicted these problems, as it offers "boot camps" to its customers, where they can learn to use their tools properly.

But what really sets the company apart are its forward-deployed software engineers (FDEs), who are tasked with embedding directly with its customers to configure Palantir's existing software platforms to solve their problems.

On August 4, Palantir  (PLTR)  reported its results for Q2 of fiscal 2025.

Alex C. Karp, co-founder and CEO of Palantir Technologies, said that Q2 was phenomenal and that the company obliterated the rule of 40, scoring 94%. (The rule of 40 is when the company's annual revenue growth plus its EBITDA margin in percentage terms exceeds 40.)

• Revenue growth of 48% year-over-year and 14% quarter-over-quarter to $1.004 billion

• Net income of $327 million, representing a 33% margin

• Adjusted income from operations of $464 million, representing a 46% margin

• Cash from operations of $539 million, representing a 54% margin

• Earnings per share of $0.13

• Adjusted EBITDA of $471 million

• Cash, cash equivalents, and short-term U.S. Treasury securities of $6.0 billion

• Revenue of between $1.083 to $1.087 billion

• Adjusted income from operations between $493 to $497 million

• Revenue of between $4.142 to $4.150 billion

• Adjusted income from operations of between $1.912 to $1.920 billion

• Adjusted free cash flow guidance of $1.8 to $2.0 billion

More AI Stocks:

• Veteran analyst revamps Palantir stock game plan after slump

• Veteran Nvidia analyst drops blunt 4-word message on its future

• AI stocks face a reality check after a $1.5 billion implosion

• Analysts revamp Broadcom price target on OpenAI deal

During the earnings call, Palantir Chief Revenue Officer Ryan Taylor said: "LLMs, on their own, are at best a jagged intelligence divorced from even basic understanding. In one moment, they may appear to outperform humans in some problem-solving task, but in the next, they make catastrophic errors no human would ever make."