Will Palantir Split After Soaring 15x In 2 Years?

Shares of Palantir Technologies (NASDAQ:PLTR) have skyrocketed over the last year, gaining over 345% and handing shareholders returns that massively outperformed the stock market as a whole.

With such enormous gains under its belt, some investors are understandably curious about the possibility of a Palantir stock split. Today, we’ll look at whether a split is likely for PLTR shares or if the company will allow its shares to keep moving higher.

Key Points

• At under $100, Palantir shares are far from the levels where splits typically occur, unlike NVIDIA or AMD.

• Strong growth could push shares higher, making a split more likely down the road.

Has Palantir Actively Discussed Splitting?

So far, Palantir hasn’t made any public statements or moves toward splitting its stock. Though the company could choose to split the shares at any time, management hasn’t begun the process or even discussed what an eventual split could look like.

With that said, there could be some advantages for Palantir in pursuing a split at some point. Most notably, a decision to split could help employees who have been compensated with stock liquidate some of their holdings without having to sell them off in large chunks. In Q4 alone, the company reported stock-based compensation of over $281 million. This was more than double the amount reported in the year-ago period. The employees who have been holding shares of PLTR as it has run up would likely benefit from the ability to sell them off in smaller portions.

Similarly, longtime Palantir shareholders could find it easier to take some of their profits with shares split into smaller, more manageable chunks. PLTR shares have risen nearly tenfold since the company went public in 2020. As a result, early retail shareholders are sitting on substantial gains that they may not want to sell off in large amounts.

Has Palantir’s Price Risen High Enough to Justify a Split?

Although there’s no doubt that Palantir has produced incredible returns, it’s important to keep the stock’s actual price in perspective. Trading under $100 per share, Palantir is a long way from being the most expensive stock on the market. Many companies allow their shares to get to multiple hundreds of dollars before splitting, while some don’t pursue stock splits until their shares are well past the $1,000 threshold.

To illustrate this point, let’s look at a couple of examples of other tech stocks that have risen alongside Palantir. Perhaps the most telling example is NVIDIA, which actually did split its shares on a 10-for-1 basis in June of 2024.

At the time of the stock split, shares were trading in the vicinity of $1,200 apiece. Even after that split, NVIDIA shares are still considerably more highly prices than those of Palantir. Like Palantir, NVIDIA also hasn’t made any moves toward another split as its shares have risen since the last one.

Another AI company that shows Palantir may not be under any serious pressure to split its stock is AMD. Like NVIDIA, AMD has split its stock in the past, but the last split in AMD’s case occurred in 2000. Shares of the chipmaker are currently over $100, making them a bit more expensive than Palantir. Despite this, AMD hasn’t made any moves to split its stock again.

All things considered, Palantir probably isn’t at a point where management will feel significant pressure to split the stock. With many other tech stocks priced above Palantir shares, there doesn’t seem to be an immediate need for a stock split. Although AI-driven stocks like PLTR have seen incredible gains in the past couple of years, it may take longer than that for companies to decide that splits are necessary.

Does Palantir Have More Room to Run?

Another major factor in whether Palantir is likely to pursue a stock split anytime in the near future is whether or not it keeps rising at a rapid pace. If PLTR tripled again, there would likely be a much stronger argument in favor of splitting the shares. If the stock flattens out at its current level or rises incrementally going forward, the company could likely put off a split for quite some time.

However, some signs suggest that Palantir’s run could be in for a slowdown. To begin with, the average analyst price target for the stock is only $87.38. At its current price, this would suggest a downside of over 13%.

The potential for downside becomes a bit more concerning when we consider that Palantir is still trading at over 500x earnings and over 80x sales. With a reasonable chance that the stock is overvalued, it’s possible that shares will move lower in the short term.

Some of Wall Street’s most famous investors have also been reducing their positions in Palantir as the stock has run up. Perhaps most notable among these was Stanley Druckenmiller, who sold almost the entirety of his Palantir stake late in 2024. The fact that some of the smartest money is starting to eye Palantir with suspicion could raise additional concerns of overvaluation.

Will Palantir Stock Split?

The chances that Palantir will split in the immediate future seem somewhat low because neither management nor the Board of Directors has announced a stock split. Although employees and retail shareholders could see some modest benefit from a split now, Palantir is far from being so expensive that it is likely to feel pressure to divide up its shares.

With that said, PLTR certainly could split eventually. In the coming 3-5 years, analysts expect to see the company’s earnings per share rise at a rate of about 26% a year. While the stock currently trades at extremely high multiples to its earnings, future growth could still put upward pressure on share prices. With shares already pushing the 3-figure mark, additional gains could put PLTR in a range where a split becomes more likely.

It’s also worth noting that some companies simply resist stock splits as a matter of course. Perhaps the most famous example of this is Berkshire Hathaway, whose Class A shares have broken above $700,000 because they have been compounding for decades without a split. Though Palantir may very well take this path, it’s more likely that it will follow the more standard route and split eventually when its shares become unusually pricey.