Synthetic intelligence (AI) know-how has existed for many years, however latest developments have taken these refined algorithms to the following stage. Companies of all sizes have been captivated by the potential for elevated productiveness, sparking one thing of an AI gold rush. Traders acknowledged the chance to money in on this secular tailwind, shopping for up shares of firms positioned to revenue from the development.Palantir Applied sciences (NYSE: PLTR) is one such firm. The corporate first made a reputation for itself amongst authorities companies for its capacity to ferret out terrorist plots earlier than they may succeed. The corporate has expanded past authorities contracts to supply knowledge mining and enterprise analytics companies for industrial enterprises.Because of its a long time of AI expertise within the subject, Palantir pivoted shortly when generative AI burst onto the scene. The corporate has developed an intriguing strategy to assist its prospects get probably the most out of AI, and this technique is paying off in an enormous means.Picture supply: Getty Photos.The arrival of AIBusinesses are at all times searching for methods to spice up their backside line, which is why the adoption of generative AI is accelerating. These AI methods could make quick work of a rising variety of time-consuming duties, releasing up employees to concentrate on extra necessary issues. For instance, these methods can:Prioritize and summarize emails and draft responsesCreate tables or charts based mostly on current dataSearch the web or inside firm methods for knowledge or documentsDraft unique paperwork and recommend revisionsWrite and debug laptop codeCreate displays with just a few prompts.Whereas these methods are removed from excellent — and nonetheless require human evaluate — it is easy to see how these automation methods can save time. And because the outdated saying goes, time is cash.A singular approachThe huge variety of the workforce means totally different jobs have totally different priorities. By figuring out probably the most repetitive and time-consuming duties, generative AI methods could be tailor-made to fulfill the wants of a particular job or firm. That is what makes Palantir’s strategy so sensible.Story continuesThe firm created its Synthetic Intelligence Platform (AIP) to develop generative AI options that handle real-world enterprise issues. Palantir works with companies to establish mission-critical wants and high-value use circumstances. They then embark on “immersive, hands-on-keyboard periods [that] enable new and current prospects to construct reside alongside Palantir engineers, all working towards the frequent purpose of deploying AI in operations.” This reportedly helps companies “go from zero to make use of case in only one to 5 days.” Palantir says it has a “rising backlog of AIP Bootcamps because of the overwhelming demand.”Take into account this gem, dropped by chief income officer Ryan Taylor throughout Palantir’s earnings name final month:In October, we set a purpose of executing 500 AIP Bootcamps inside one yr. We now have already blown that purpose out of the water, having accomplished greater than 560 Bootcamps throughout 465 organizations thus far … We’re already seeing proof of Bootcamps serving to to considerably compress gross sales cycles and speed up the speed of latest buyer acquisition.That technique is bearing fruit, as evidenced by Palantir’s fourth-quarter outcomes. U.S. industrial income grew 70% yr over yr and 12% sequentially, pushed by sturdy demand for AIP. Moreover, for 2024, administration is guiding for the phase to develop a minimum of 40% — which may find yourself being conservative.A brand new two-year highExcitement concerning the speedy adoption of AI and Palantir’s latest blockbuster outcomes have despatched the inventory hovering 240% over the previous yr. Its valuation has risen as effectively with the inventory buying and selling at 77 occasions ahead earnings estimates and 17 occasions anticipated 2025 income. That may appear prohibitively costly — a minimum of at first look — however these numbers solely inform a part of the story.These metrics fail to bear in mind the corporate’s accelerating development trajectory. Then again, the inventory’s ahead value/earnings-to-growth (PEG) ratio — which components in Palantir’s multiyear development outlook — is lower than 1, the usual for an undervalued inventory.With a long time of real-world expertise, a superb go-to-market technique, and powerful secular tailwinds, Palantir has a strong basis and a transparent path ahead. I’d argue that even at a two-year excessive, Palantir inventory is a purchase.Must you make investments $1,000 in Palantir Applied sciences proper now?Before you purchase inventory in Palantir Applied sciences, contemplate this:The Motley Idiot Inventory Advisor analyst staff simply recognized what they consider are the 10 greatest shares for buyers to purchase now… and Palantir Applied sciences wasn’t certainly one of them. The ten shares that made the lower may produce monster returns within the coming years.Inventory Advisor offers buyers with an easy-to-follow blueprint for achievement, together with steerage on constructing a portfolio, common updates from analysts, and two new inventory picks every month. The Inventory Advisor service has greater than tripled the return of S&P 500 since 2002*.See the ten shares*Inventory Advisor returns as of March 11, 2024Danny Vena has positions in Palantir Applied sciences. The Motley Idiot has positions in and recommends Palantir Applied sciences. The Motley Idiot has a disclosure coverage.Close to a 2-Yr Excessive, Is Palantir Applied sciences Inventory Nonetheless a Purchase? was initially revealed by The Motley Idiot