Palantir at $136, AMD at $167: Buy, Sell or Hold?

Palantir is rated a hold at $136.88, while AMD is also rated a hold at $467.51. Palantir provides an operating layer for governments and large enterprises deploying AI. Its stock has declined 10.31% over the past month and 22.99% year to date, underperforming the S&P 500. Q4 2025 showed strong fundamentals, including 70% year-over-year revenue growth to $1.406 billion, a 137% jump in U.S. commercial revenue, and a Rule of 40 score of 127. Guidance for 2026 targets 61% revenue growth, at least 115% U.S. commercial growth, and free cash flow of $3.93 billion to $4.13 billion. Despite execution, valuation is described as punishing, with trailing and forward P/E ratios of 154 and 94 and free cash flow yield under 1%. Insider activity is net selling and stock-based compensation totaled $684 million for FY 2025.

"Palantir builds the operating layer for governments and large enterprises deploying AI. Its stock has cooled, falling 10.31% in the past month and 22.99% year to date, trailing the S&P 500's roughly 9% YTD gain."

"Q4 2025 was a fundamental statement. Revenue grew 70% year over year to $1.406 billion, U.S. commercial revenue jumped 137%, and the Rule of 40 score hit 127%. CEO Alex Karp called the company "an n of 1". Guidance for 2026 calls for 61% revenue growth and U.S. commercial growth of at least 115%. Free cash flow guidance of $3.93 billion to $4.13 billion implies real, GAAP-profitable AI monetization."

"The valuation remains punishing. PLTR trades at a trailing P/E of 154 and a forward P/E of 94, with FCF yield under 1%. The Polymarket crowd assigns a 24% probability to $126 for May and only roughly 15% combined probability to prices above $150. Insider activity is net selling across 21 recent transactions, and stock-based compensation hit $684 million for FY 2025."

"At $136.88, our analysis rates Palantir a hold. The business is executing at a level few software companies ever reach, but the multiple still demands flawless execution every quarter. The AI fair-value model pegs base case at $152.44, only modest upside, while the analyst consensus target of $183.73 implies about 34% upside, though targets remain estimates rather than certainties."

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