The Biggest Bet in Tech Isn't on Polymarket. It's This AI Stock.

By James Hires – Mar 11, 2026 at 6:05AM ESTKey PointsPalantir represents a hybrid of defense contractor and AI company. It is growing its revenue very quickly and has a high profit margin. The company is projecting 60% revenue growth over 2025 for 2026. Prediction markets like Polymarket and Kalshi have been on the rise since 2024, when Polymarket became a far more accurate predictor of which candidate would win that year's presidential election than any pollster. But when it comes to how to generate a solid return for yourself, you'd be far better off investing in the stock market than betting on an election or a football game. And while prediction markets have yet to prove they'll be a durable trend, artificial intelligence (AI) has certainly proved it has staying power. And one of the most interesting AI companies is Palantir (NASDAQ: PLTR), which is a unique hybrid of an AI tech company and a defense contractor. Image source: Getty Images. Revolutionizing information warfare Palantir is proof positive that one of the most effective weapons a military can have is information. Its Gotham platform connects everything on a battlefield that a commander might want to see from a bodycam worn by an individual soldier to a satellite orbiting overhead. It helps to remove some of the fog of war and allow for clearer decision-making. Gotham is a large part of why the U.S. government is Palantir's single largest customer, making up $1.85 billion of the $4.48 billion in revenue the company generated in 2025. Last year also saw Palantir's U.S. government revenue grow 55% over 2024 and its total revenue grow 56% over the same period. But Palantir is also a commercial AI company, and its AIP platform allows companies to use Palantir's powerful programs to optimize their businesses in the same way it has allowed generals to optimize their operations. ExpandNASDAQ: PLTRPalantir TechnologiesToday's Change(-3.41%) $-5.34Current Price$151.09Key Data PointsMarket Cap$361BDay's Range$150.14 - $156.5952wk Range$66.12 - $207.52Volume12KAvg Vol49MGross Margin82.37% Revolutionizing information, period AIP users can see all their operations across their business in one place and set up AI applications to automate as much as possible. The government also makes use of AIP, but so do Lowe's and Lockheed Martin, among others. It's no wonder why Palantir is growing as quickly as it is if you look at the results its software can generate. By using AIP, General Dynamics reduced the time it took to plan its submarine schedule from 160 hours to 10 minutes.

The Portsmouth Naval Shipyard reduced its material review time frame from weeks to under one hour. Information, as it turns out, is just as effective a tool as it is a weapon. And the power to use that tool is a profitable product to sell. Aside from its incredible revenue growth, Palantir also operates a net profit margin of 36.5% and has a debt-to-equity ratio of 0.03%. For 2026, it's anticipating even more incredible growth. For the full year, Palantir has set guidance of $7.182 to $7.198 billion, which would represent 60% growth over 2025's number. Now, it must be noted that Palantir is trading at a price to earnings (P/E) ratio of 248 right now which is very high. However, when you factor in growth, expressed in its projected future earnings, you get Palantir's price to earnings to growth (PEG) ratio which is 3.49 at present. That's above the ideal, which is 1. That said, this valuation is still lower than the 5+ PEG ratio the company has maintained since 2024. The valuation is a concern, but one that's mitigated by Palantir's growth rate and overall strong fundamentals. However, if its growth stalls Palantir begins to look even more overvalued. Give Palantir a look if you want a better way to generate a return than betting on who will win your next election.Read NextMar 10, 2026 •By Danny Vena, CPAPolymarket Joins Forces with Palantir to Bring Its Industry-Leading Artificial Intelligence (AI) to the Prediction MarketsMar 10, 2026 •By Leo SunA Once-in-a-Decade Opportunity: 1 AI Software Stock to Buy Hand Over Fist Right Now (Hint: It's Not Palantir)Mar 10, 2026 •By Patrick SandersTop Stocks to Double Up on Right NowMar 10, 2026 •By Adam SpataccoWhere Will Palantir Stock Be in 5 Years?Mar 9, 2026 •By Adam SpataccoWhy Are Software Stocks Down?Mar 9, 2026 •By Will EbiefungPrediction: This Is How Much Further Palantir Stock Could Fall in 2026About the AuthorJames Hires is a contributing analyst at The Motley Fool covering the technology, energy, and mining industries. He is also a contributing analyst at SeekingAlpha. Prior to The Motley Fool, James spend six years ghostwriting at The Oxford Club, a leading financial newsletter in his hometown of Baltimore, Maryland. He holds a bachelors in history from Towson University and enjoys covering companies with historical or cultural significance.TMFJamesHiresX@moneyguyjimStocks MentionedPalantir TechnologiesNASDAQ: PLTR$151.14(-3.38%)-$5.29Lowe's CompaniesNYSE: LOW$251.02(+0.32%)+$0.80Lockheed MartinNYSE: LMT$651.22(-1.95%)-$12.93General DynamicsNYSE: GD$355.53(-1.78%)-$6.45*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.