Yahoo Finance Palantir soars 15% after company reports strong earnings and says demand for its AI tool is 'without precedent'
Palantir stock jumped 15% Tuesday after the software company touted strong demand for its AI tools.
The company also topped earnings expectations for the first quarter.
"The depth of engagement with and demand for our new Artificial Intelligence Platform is without precedent," CEO Alex Karp said.
Palantir stock surged Tuesday as the analytics software maker spoke of hot demand for its upcoming AI tool and projected the company will be profitable throughout this year.
"The depth of engagement with and demand for our new Artificial Intelligence Platform is without precedent," CEO Alex Karp said in the company's first-quarter earnings report released late Monday.
Shares shot up 15% shortly after the opening bell to $8.89, the highest price since mid-February. The stock already this year had been up 20%, among a number of tech stocks that have benefited from AI prospects on the back of the viral popularity of ChatGPT from OpenAI.
Palantir's AIP will allow military, industrial and other organizations to run large language models and other AI securely in their private networks to make logistical and other decisions. Karp in a letter to shareholders Monday said the first iteration of the platform will be offered to select customers this month.
"[Our] strategy on AI is to just to take the whole market," Karp said during a conference call with analysts.
Palantir, whose co-founders include billionaire tech investor Peter Thiel, posted first-quarter adjusted earnings of $0.05 cents a share, topping expectations of $0.04 a share. It also logged a net profit of $0.01 a share.
Revenue rose 18% to $525 million, exceeding expectations of $505.8 million.
"We were profitable again this quarter... And we now anticipate that we will remain profitable each quarter through the end of the year," Karp said in the earnings report.
Alongside its projection of net income quarterly, it sees adjusted income from operations of $506 million to $556 million and revenue between $2.185 to $2.235 billion.
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