Why I’m Buying More Palantir—Even After Cathie Wood Sold $185M Worth

The Rise as an AI Powerhouse

Palantir Technologies (NASDAQ:PLTR) has solidified its status as a dominant force in artificial intelligence (AI), transforming data analytics into actionable intelligence. Its Gotham and Foundry platforms enable governments and enterprises to navigate complex datasets with precision. The Artificial Intelligence Platform (AIP) has become a game-changer, integrating generative AI to deliver real-time insights. 

With a market cap surpassing $335 billion, Palantir’s stock has soared 88% in 2025, fueled by robust demand across commercial and government sectors, including a $178 million AI contract it won last year with the U.S. Army. 

Analysts like Wedbush’s Dan Ives have raised price targets to $160 per share, praising Palantir’s leadership in the AI software revolution. Despite Ark Invest‘s Cathie Wood recently selling $185 million worth of PLTR shares, Palantir’s strategic positioning, innovative platforms, and financial momentum make it a compelling investment for those betting on AI’s transformative potential.

Cathie Wood’s Palantir Journey

Wood has been a prominent advocate for Palantir, building a position worth over $700 million by the end of April, making it one of her top 10 holdings across her family of exchange-traded funds (ETFs). However, starting in May, she began selling shares, offloading $185 million in PLTR stock. 

Despite this, Palantir remains her eighth-largest holding, valued today at $528 million, indicating she maintains confidence in its long-term prospects. Wood’s sales likely reflect strategic portfolio rebalancing or profit-taking after PLTR’s surge this year, rather than a lack of faith. Her investment style often involves trimming positions in high-flying stocks to fund new opportunities or manage risk. 

The significant stake she retains suggests she still views Palantir as a key player in the AI-driven future, aligning with her focus on disruptive technologies. For investors, her moves provide context but don’t overshadow Palantir’s underlying strengths.

Why Palantir Remains a Strong Buy

Palantir’s growth trajectory is a primary reason to buy, despite Wood’s sales. Its AI-driven platforms, particularly Foundry and AIP, are gaining traction across industries. The commercial segment is booming, with enterprises adopting Palantir’s solutions to optimize operations and leverage AI. 

Government contracts, like the $178 million TITAN program, reinforce its dominance in high-stakes markets. Ives has called Palantir a “core winner” in AI spending, projected to grow at a 37% CAGR through 2030.

Palantir’s financials bolster the bull thesis. The company has achieved consistent profitability, with second-quarter earnings expected to show 38% revenue growth year-over-year to $980 million, driven by AIP adoption. 

Its 80% gross margins reflect a scalable, asset-light software model, offering strength against economic headwinds. Unlike hardware-focused AI firms, Palantir’s flexibility ensures sustained growth.

A Unique Valuation Perspective

While PLTR stock is offered at a premium, its valuation reflects a rare blend of growth, endurance, and AI leadership, making it a standout long-term investment.

Seize the Opportunity

Investors should view Wood’s sales as a tactical move, not a warning. Palantir’s leadership in AI, strong financials, and expanding client base make it a standout. Buying PLTR stock now positions investors to capitalize on the AI revolution, regardless of short-term portfolio shifts by billionaire investors and high-profile managers.