Palantir shares have soared about 1,000% over the last three years as it's launched its popular Artificial Intelligence Platform (AIP), delivered accelerating growth over several quarters, turned profitable, gained admission into the S&P 500, and built a strong U.S. commercial business.

Palantir shares have advanced 550% since January 2024, which makes it the best performing stock in the S&P 500 and the second best in the Nasdaq-100. Louie DiPalma at William Blair Research says Palantir shares could decline 70% and it would still be the most expensive software stock on the market.

But the stock market is a discounting mechanism, which means all that greatness is already priced into Palantir’s stock, veteran stock trader Mark Minervini told MarketWatch. An