AI software firm Palantir saw strong quarterly revenue, but its price-to-earnings ratio could be a warning sign for investors.

Palantir Technologies Inc. (NYSE:PLTR) deepened its partnership with Fujitsu Ltd. (OTC:FJTSY) through a new licensing deal signed Aug. 5, 2025, granting Fujitsu the rights to offer the Palantir Artificial Intelligence Platform (AIP) in Japan.

Palantir's growth continues to be led by U.S. commercial customers adopting its Artificial Intelligence Platform (AIP). The company once again credited AIP's ontology, saying it is "pure understanding," and that without it, large language models (LLMs) cannot actually work in the real world

Palantir Technologies on Monday raised its annual revenue forecast for the second time this year, expecting sustained demand for its AI-linked services from businesses and governments.

Palantir Technologies has created one of the most dramatic stories on Wall Street this year, defying conventional investment narratives. In 2025, it became the top-performing stock in the S&P 500, surging over 106% and at points climbing 144% from the start of the year—outpacing even AI heavyweights like Nvidia.

Palantir stock closed slightly up on Thursday, after declining for six straight sessions. Palantir's pullback raised questions over whether the AI stock boom is winding down.

Palantir Technologies was the worst performer in the S&P 500 on Tuesday, with the stock continuing to surrender gains following a blowout earnings report earlier this month.

The S&P 500 fell 0.6% for a third straight loss , though it remains near its all-time high set last week. The Dow Jones Industrial Average added 10 points, or less than 0.1%, and the Nasdaq composite slumped 1.5%.

Tech workers are also increasingly determined to hold their workplaces accountable for enabling the genocide in Gaza.

Tyler Radke, Citi senior equity research analyst, joins 'Squawk Box' to discuss Palantir's stock performance, who their top competitors are, and more.