July 4, 2025 — Palantir Technologies Inc. (NASDAQ:PLTR) continues its remarkable ascent in 2025, with shares surging 78.69% year-to-date, making it the top-performing stock in the S&P 500 for 2024 and retaining that momentum into the first half of 2025.
CNBC’s Jim Cramer has doubled down on his bullish outlook, sticking by his prediction that Palantir’s stock could reach $200, a forecast he first made when the stock was trading at only $50.
However, the company’s skyrocketing valuation and its controversial role in providing technology to U.S. Immigration and Customs Enforcement (ICE) have sparked significant debate among investors and activists alike.
During a recent episode of CNBC’s Mad Money on July 2, 2025, Cramer reiterated his confidence in Palantir, describing it as a “$200 stock disguised as a $144 stock,” implying a potential 36% upside from its current levels.
He highlighted the company’s involvement in innovative projects, such as its Nuclear Operating System (NOS), aimed at supporting nuclear infrastructure development on time and within budget.
Cramer also noted Palantir’s ability to reduce costs for clients, stating, “We see Palantir, of course, the software company that brings costs down the moment you speak to them, is back on a roll after Friday’s rare decline, levitating 4%.”
Palantir’s software platforms—Gotham, Foundry, Apollo, and its Artificial Intelligence Platform (AIP)—enable organizations to integrate and analyze vast datasets for critical decision-making.
The company’s strong financial performance, including 39% revenue growth and a $1.9 billion backlog of remaining performance obligations, underscores its appeal to investors.
Its total addressable market (TAM) is projected to exceed $1 trillion within the next decade, driven by demand in both government and commercial sectors.
Cramer’s optimism is further supported by endorsements from industry leaders.
Microsoft CEO Satya Nadella, speaking at a Y Combinator event, praised Palantir’s Forward Deployed Engineer model as “fantastic” for helping clients leverage transformative AI technologies.
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Additionally, Palantir’s Rule of 40 score of 83% reflects its ability to balance growth and profitability, a metric that resonates with investors focused on long-term potential.
Palantir’s Role in ICE Immigration Enforcement Sparks Backlash
While Palantir’s stock performance and technological prowess have drawn praise, its long-standing relationship with ICE has ignited controversy.
Since 2011, Palantir has been a key contractor for ICE, providing data analytics tools that consolidate data sources to identify immigrants for arrest and deportation.
In April 2025, Palantir secured a $30 million contract to develop “ImmigrationOS,” a surveillance platform designed to provide ICE with “near real-time visibility” on individuals self-deporting from the United States.
The company’s technology has been deemed “mission critical” by ICE, enabling the agency to track visa overstays and enhance enforcement efforts.
However, this role has drawn sharp criticism from activists and advocacy groups.
On June 26, 2025, activists blocked the doors of Palantir’s New York City office, protesting the company’s involvement in what they describe as mass surveillance aiding ICE’s deportation efforts.
Posts on X captured the sentiment, with one user stating, “NEW YORKERS MUST REJECT PALANTIR AT EVERY TURN.”
Further fueling the controversy, reports surfaced on June 24, 2025, revealing that Stephen Miller, a senior advisor to President Trump and architect of stringent immigration policies, holds up to $250,000 in Palantir stock through a brokerage account for one of his children.
Ethics experts, including Don Fox, former acting head of the Office of Government Ethics, raised concerns about potential conflicts of interest, noting that Miller “could easily become involved in policy matters that have a direct and predictable impact on Palantir.”
Former Labor Secretary Robert Reich also criticized Miller, stating on X, “He’s cashing in on his own cruelty.”
In response to allegations of mass surveillance, Palantir has rejected comparisons to collaboration with authoritarian regimes, emphasizing the legality and necessity of its work with ICE.
However, the backlash has intensified scrutiny of Palantir’s government contracts, which account for a significant portion of its revenue, posing a potential risk if public or political sentiment shifts against the company.
Balancing Growth and Risk
Despite the controversy, Palantir’s commercial business is gaining traction, driven by its AIP and strategic initiatives like customer boot camps, where engineers collaborate with clients to develop tailored AI solutions.
This approach has accelerated adoption among enterprise clients, contributing to double-digit revenue growth in both government and commercial segments.
However, some analysts caution that Palantir’s valuation, with a price-to-sales (P/S) ratio exceeding 104 as of July 1, 2025, is significantly higher than historical norms for tech companies, which typically range between 30 and 43.
This lofty valuation has led to concerns about a potential 30% drop, as suggested by some Wall Street forecasts.
Short interest in the stock has also declined, from 5% of float in October 2024 to 2% in June 2025, indicating that short sellers have faced challenges betting against Palantir’s momentum.
In the midst of chaos, Palantir’s stock remains a polarizing investment.
Cramer’s bullish $200 price target and the company’s strong fundamentals attract growth-oriented investors, while its high valuation and ethical controversies raise red flags for others.
The company’s ability to navigate public scrutiny over its ICE contracts while expanding its commercial footprint will be critical to sustaining its meteoric rise.
For now, Palantir continues to dominate as Wall Street’s favorite AI stock, with a market cap exceeding $317 billion and a stock price that has soared 1,940% since the start of 2023.
Investors must weigh the company’s technological innovation and growth potential against the risks tied to its government contracts and lofty valuation.
But I’m curious to know what you think — leave your thoughts below.
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