Palantir Technologies, an AI software company, is witnessing a remarkable surge in investor interest, particularly among South Korean investors, who have recently favored it over tech giant Apple. As of April 30, 2025, holdings of Palantir shares by domestic investors reached approximately $42.6 billion (around 6 trillion won), surpassing Apple's holdings of $41 billion (about 5.8 trillion won), according to the Korea Securities Depository. This shift marks a significant change in investment trends, as just a few months prior, Palantir's holdings were less than half of Apple's.
The surge in Palantir's stock is attributed to its impressive performance in 2024, where it saw a staggering 340% increase. This year, it has continued to climb, with an additional 64% expected rise in 2025. Despite facing market volatility, including a dip to $66.12 in April due to concerns over interest rate hikes and reduced spending on AI infrastructure, the company's stock has rebounded. The market's recovery was aided by former President Donald Trump's announcement of a 90-day tariff exemption, which boosted overall investor sentiment.
Analyst Stephen Guilfoyle, who first purchased Palantir shares at $16 in 2023, has maintained a bullish outlook on the company. He cites its robust financial position, with an anticipated adjusted free cash flow of $12.5 billion in 2024, and the growing demand for its AI platform (AIP) as key factors in his positive assessment. Guilfoyle's target price for Palantir has now been raised to $153, reflecting a potential 23% increase from the last closing price of $124.28.
Palantir's unique positioning in the market is bolstered by its Gotham platform, which provides essential data management solutions for government and enterprise clients. This platform has enabled the company to leverage AI applications across various sectors, including banking, drug development, manufacturing, retail, and military operations. The ongoing AI boom, which was catalyzed by the release of OpenAI's ChatGPT in December 2022, has significantly increased the demand for technologies related to artificial intelligence.
Interestingly, Palantir's rise has not only been reflected in stock prices but also in the investment behavior of Korean individual investors, often referred to as "서학개미" (Seohakgaemi). This group has net purchased $5.2 billion worth of Palantir shares in 2025 alone, marking it as the seventh-highest investment following Tesla and leveraged semiconductor ETFs. In contrast, Apple saw a meager net purchase of only $2.33 million during the same period.
Despite the impressive growth, analysts remain cautious. Kim Soo-jin from Mirae Asset Securities noted that while it is challenging to predict stable earnings amid uncertain macroeconomic conditions, Palantir undeniably plays a crucial role in the AI industry. The company has emerged as a leader in the defense sector, showcasing its capacity to secure large contracts and drive AI innovations.
The stock's trajectory has been closely watched, especially after a brief downturn in February 2025 when news of potential cuts to the U.S. defense budget led to a temporary decline. However, as investor sentiment towards technology stocks improved, Palantir's stock price has approached previous highs, demonstrating its resilience in a fluctuating market.
Palantir's ability to adapt and thrive amid market challenges is further exemplified by Guilfoyle's investment strategies. He strategically sold some shares when the stock price peaked at $113 in February, later repurchasing five times the amount when prices fell between $102 and $68. This approach has proven successful, reinforcing his bullish stance on the company.
As Palantir continues to secure significant contracts and expand its influence in various industries, its growth trajectory remains a topic of keen interest. The company's strong fundamentals and strategic positioning in the AI landscape suggest that it may continue to attract investment, particularly from those looking to capitalize on the ongoing technological revolution.
In the broader context, Palantir's rise reflects a shift in investment priorities among South Korean investors, who are increasingly recognizing the potential of AI technologies. With a growing number of exchange-traded funds (ETFs) incorporating Palantir, totaling 73 listed products in the domestic market, the company is solidifying its status as a key player in the AI sector.
In conclusion, Palantir Technologies stands at the forefront of the AI boom, demonstrating remarkable growth and resilience despite market fluctuations. Its unique offerings and strategic positioning continue to attract investor interest, particularly from South Korean individuals, marking a significant shift in the investment landscape.
