Palantir Technologies recently reported a strong fourth quarter, with revenue climbing 20% to $608 million, surpassing analyst expectations. The company anticipates full-year revenue between $2.69 billion and $2.77 billion, driven by robust demand for its AI-powered software platforms like Palantir Foundry and Palantir Gotham. Its U.S. commercial revenue is projected to grow by 70% or more in 2024, and the U.S. government segment saw a 66% increase. Palantir's stock has surged 140% over the past year, reflecting significant investor confidence.
Billionaire Peter Thiel, a co-founder of Palantir, has notably rebalanced his hedge fund, Thiel Macro. He divested all Nvidia shares and reduced his stake in Tesla during the third quarter. Instead, Thiel heavily invested in Apple and Microsoft, which now constitute 61% of his fund's $74 million in assets. Apple, which reported strong financial results, plans to integrate Alphabet's Gemini AI models into Siri. Microsoft continues to expand its enterprise software and cloud services, including its AI platform Foundry.
In other AI developments, SoundHound AI, specializing in voice AI platforms, has seen significant revenue growth, with Q3 revenue at $42 million and a raised full-year guidance for 2025 to $165 to $180 million. Despite this, the company is not yet profitable, leading some investors to exercise caution, though analysts generally rate it a "Moderate Buy." Macnica Holdings raised its net sales forecast to ¥1.2 trillion due to strong demand for AI servers but lowered its profit outlook due to delays in autonomous driving bus services. Advantest, a key semiconductor testing company, reported record sales and profits from AI-related chips and plans to expand production capacity.
DC Capital Partners made a majority investment in Knexus, a provider of Google-enabled AI solutions for U.S. defense and civilian agencies, aiming to scale public sector AI. Investors are also pouring billions into AI hardware infrastructure, with startups like Ricursive developing AI systems for semiconductor design, highlighting a shift towards custom chips. Meanwhile, Elon Musk merged his AI company, xAI, with SpaceX, creating a private company valued at an estimated $1.25 trillion. Musk envisions space-based AI as crucial for long-term scaling, with initial plans for SpaceX to launch satellites supporting Earth-based AI development.
Key Takeaways
- Palantir Technologies reported a 20% revenue increase to $608 million in Q4, with full-year revenue projected between $2.69 billion and $2.77 billion, driven by strong AI demand.
- Palantir's U.S. commercial revenue is expected to grow 70% or more in 2024, and its U.S. government segment saw a 66% increase.
- Peter Thiel's hedge fund, Thiel Macro, sold all Nvidia shares and reduced Tesla holdings, significantly investing in Apple and Microsoft.
- Apple and Microsoft now account for 61% of Thiel Macro's assets, with Apple planning to integrate Alphabet's Gemini AI models into Siri.
- SoundHound AI reported a 68% revenue increase in Q3 and raised its 2025 full-year guidance to $165-$180 million, despite not yet being profitable.
- Macnica Holdings raised its net sales forecast to ¥1.2 trillion due to strong AI server demand but lowered its profit outlook due to autonomous driving delays.
- Advantest, a semiconductor testing company, reported record sales and profits from AI-related chips and plans to expand production capacity.
- DC Capital Partners made a majority investment in Knexus, a Google-enabled AI solutions provider for government programs.
- Investors are making significant bets on AI hardware infrastructure, with startups raising billions for custom-built chips and AI integration.
- Elon Musk merged xAI with SpaceX, creating a $1.25 trillion private company, with plans for space-based AI development.
Palantir stock soars on strong AI demand and record quarter
Palantir Technologies Inc. saw its stock surge after reporting strong fourth-quarter results and providing an optimistic outlook. Revenue rose 20% to $608 million, beating analyst expectations. The company expects full-year revenue between $2.69 billion and $2.77 billion, driven by high demand for its AI-powered software platforms like Palantir Foundry and Palantir Gotham. Its U.S. commercial revenue is projected to grow 70% or more in 2024. The stock gained 140% in the past year, reflecting strong investor confidence.
Palantir exceeds Q4 forecasts driven by AI and defense
Palantir Technologies surpassed Wall Street's fourth-quarter earnings and revenue estimates, reporting $1.41 billion in revenue. The company's success comes from accelerated artificial intelligence adoption and increased demand for its tools from the U.S. government. CEO Alex Karp noted significant growth in the U.S. government segment, which saw a 66% increase. Palantir also issued upbeat guidance for the first quarter and fiscal year 2026, with revenue forecasts well above expectations. The company provides software and data tools to agencies like the Department of Defense.
Peter Thiel shifts investments to Apple and Microsoft AI stocks
Billionaire Peter Thiel, co-founder of Palantir Technologies, has significantly changed his hedge fund's investments. In the third quarter, Thiel Macro sold all its Nvidia shares and reduced its stake in Tesla. He instead invested heavily in Apple and Microsoft, which now make up 61% of the fund's $74 million in assets. Apple reported strong financial results, with revenue up 16% to $143.7 billion, and plans to use Alphabet's Gemini models for Siri. Microsoft, a major enterprise software and cloud provider, also saw growth in its AI services like Foundry.
Peter Thiel invests heavily in Apple and Microsoft AI
Billionaire Peter Thiel, co-founder of Palantir Technologies, has reshaped his hedge fund, Thiel Macro, by selling off Nvidia and trimming his Tesla holdings. He then significantly increased his investments in Apple and Microsoft. These two artificial intelligence stocks now account for 61% of his fund's assets, with 27% in Apple and 34% in Microsoft. Apple reported strong financial results in late 2025 and plans to integrate Alphabet's Gemini AI models into Siri. Microsoft continues to expand its enterprise software and cloud services, including its AI platform Foundry.
Top investor avoids SoundHound AI stock due to profit concerns
SoundHound AI stock has seen big ups and downs, losing about 40% of its value in the past year. The company, which develops voice AI platforms, has grown its revenue significantly, with Q3 revenue at $42 million and a raised full-year guidance for 2025 to $165 to $180 million. However, top investor Reuben Gregg Brewer is staying away from the stock because SoundHound AI is not yet profitable. He believes it is too early to tell who will win in the competitive AI market. Despite his caution, Wall Street analysts generally have a "Moderate Buy" rating for SoundHound AI.
Macnica raises sales forecast on AI but cuts profit outlook
Macnica Holdings Inc. updated its financial outlook for the fiscal year ending March 31, 2026. The company raised its projected net sales from ¥1.05 trillion to ¥1.2 trillion, thanks to strong demand for AI servers and cybersecurity solutions. However, Macnica also lowered its operating and ordinary profit forecasts. This profit reduction is due to unexpected delays in bringing its autonomous driving bus services to market. Macnica is a Japan-based technology trading company that supplies electronic components and IT solutions.
SoundHound AI poised for strong growth in 2026
SoundHound AI, a company specializing in audio recognition software, appears ready for significant growth in 2026. Its products are gaining traction in industries like automotive and customer service, with a French insurance company and top financial institutions adopting its AI solutions. SoundHound AI reported a 68% revenue increase in Q3 and raised its full-year outlook, with analysts predicting 37% revenue growth for 2026. The company is currently prioritizing market capture over immediate profits, as shown by its negative operating margin. Despite this, its stock is at its cheapest level in over a year.
Advantest sees record AI sales and raises financial outlook
Advantest, a key player in semiconductor testing, reported record sales and profits driven by strong demand for AI-related chips. The company raised its full-year financial guidance, showing confidence in its continued growth. Advantest also announced plans to expand its production capacity to meet the increasing demand for its testing solutions. Additionally, the company is canceling a significant amount of its treasury shares, a move that often signals a positive outlook to investors. These actions highlight Advantest's strong position in the booming AI market.
DC Capital invests in government AI platform Knexus
DC Capital Partners, an investment firm focused on government and engineering markets, announced a majority investment in Knexus. Knexus, founded in 2006 and based in Vienna, Virginia, provides advanced artificial intelligence solutions for critical government programs. The company is a trusted partner to U.S. defense and civilian agencies, known for deploying Google-enabled AI solutions and being a Google Public Sector Premier Partner. This partnership will help Knexus grow its business development, technology, and operations. Both companies aim to scale AI solutions for the public sector, emphasizing reliability and security.
Investors pour billions into AI hardware infrastructure
Investors are making large bets on artificial intelligence as a fundamental part of core operating infrastructure. Startups recently raised billions of dollars, showing strong confidence in the AI sector. For example, Ricursive is developing AI systems that help design semiconductors faster and more efficiently. This trend highlights a shift towards custom-built chips and integrating AI into essential business operations. The expansion of AI-driven finance tools into Europe also shows growing confidence in these technologies across different markets.
Elon Musk merges xAI with SpaceX creating huge company
Elon Musk is merging his artificial intelligence company, xAI, with his rocket and satellite company, SpaceX. This merger creates the world's most valuable private company, with an estimated worth of $1.25 trillion. SpaceX still plans to go public later this year. Musk believes that space-based AI is crucial for long-term scaling and envisions transporting resource-intensive AI efforts to space. Initially, SpaceX will launch satellites to support AI development on Earth, with future plans for space-based data centers to power civilizations on other planets.
Sources
- Palantir’s stock surges as AI demand drives another record quarter
- Palantir beats fourth-quarter estimates on the strength of AI and defense demand
- Palantir Billionaire Peter Thiel Sells Nvidia and Tesla, and Buys 2 AI Stocks That Now Account for 61% of His Portfolio
- Palantir Billionaire Peter Thiel Sells Nvidia and Tesla, and Buys 2 AI Stocks That Now Account for 61% of His Portfolio
- ‘This Ride Isn’t for Me’: Why a Top Investor Is Passing on SoundHound AI Stock
- Macnica Lifts Sales Outlook on AI and Security Demand but Trims Profit Forecasts
- SoundHound AI Looks Primed to Deliver Supercharged Returns in 2026
- Advantest (TSE:6857) Valuation Check After Record AI Sales, Upgraded Guidance And Share Cancellation
- DC Capital Partners Announces Majority Investment in Applied AI Platform Knexus
- Investors Bet Big on AI as Core Hardware Infrastructure
- Elon Musk Is Rolling xAI Into SpaceX—Creating the World’s Most Valuable Private Company
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