Think It's Too Late to Buy Palantir Stock? Here's the Biggest Reason Why There's Still Time.

Jake Lerch, The Motley Fool

Mon, Jun 16, 2025, 11:05 AM 3 min read

• The rapid growth of AI makes it difficult to estimate Palantir's total addressable market.

• Nevertheless, some estimates suggest it could grow to well over $1 trillion 10 years from now.

• 10 stocks we like better than Palantir Technologies ›

With its share price up roughly 685% over the last 18 months, investors want to know: Is it too late to buy Palantir Technologies (NASDAQ: PLTR) stock?

My answer? No, there's still time. Here's why.

For growth stocks, one of the key measures of growth potential is total addressable market (TAM). This figure represents the total revenue opportunity that a company could serve with its products or services.

It's difficult to pin down an accurate TAM for Palantir for one big reason: Artificial intelligence (AI) is a cutting-edge technology, and breakthroughs are frequent. Therefore, establishing what tasks AI can do -- or will be able to do -- is hard to say. Thus, it's even harder to quantify what organizations might be willing to pay for AI-powered services.

Nevertheless, many analysts have tried to estimate Palantir's TAM. In short, I've seen estimates of Palantir's TAM reaching $1.4 trillion by 2033.

That's an enormous figure, and it is far from a certainty. However, one thing is clear: Analysts agree that Palantir's TAM is massive. Even the most conservative estimates, released by the company in 2020, were for a TAM of $120 billion.

Over the last 12 months, Palantir generated about $3.1 billion in revenue. Granted, its revenue is growing quickly -- 39% year over year. But even at its current fast pace, it would take the company more than a decade to hit $100 billion in annual revenue.

The good news here for investors is that Palantir still has a massive amount of room to grow into its TAM. Furthermore, if the higher-end estimates prove correct, it's possible that Palantir's growth could move faster -- or last longer -- than expected. Therefore, investors should remain confident that Palantir has many years of growth ahead.

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