Palantir Technologies stock (NASDAQ: PLTR) has had a remarkable run this year, more than doubling since early January to trade at around $160 per share. The stock has been buoyed by surging interest in generative AI and a wave of new government contracts following the re-election of Donald Trump as U.

Palantir's stock has delivered extraordinary returns, but its current valuation is extremely stretched, trading at a forward P/E above 200. Read the latest analysis on the stock here.

As you can see, Palantir has gone from a slow-growth, barely profitable company to a fast-growing, high-margin business in just two years, and a closer look at the business shows its key segments are outgrowing the company overall.