Palantir is rated Strong Buy, with the market underestimating its margin expansion potential, driven by falling AI compute costs and partner-led deployments. PLTR's structurally higher margins are supported by partners funding engineering and hardware, shifting deployment costs off Palantir's books and enhancing operating leverage. Consensus expects margins to shrink, but my five-year model projects up to 70% operating margins and a potential $500/share valuation by 2031.
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