IDC projects $153B AI software market by 2028, fueling Palantir's strong growth

Palantir Technologies is experiencing robust growth fueled by its expanding artificial intelligence (AI) software offerings and significant government contracts. The company reported a 45% surge in commercial revenue in Q2, driven by marketing new AI products to enterprise clients.

A major boost came from the U.S. Defense Department, which announced a $795 million contract increase, a 166% rise, for Palantir's Maven Smart System software supporting U.S. Combatant Commands.

This momentum is reflected in Palantir's remaining deal value (RDV) rising 45% year-over-year to $6 billion, indicating a strong pipeline of future revenue.

The company’s stock has responded positively, climbing 63% this year despite market volatility, underscoring investor confidence in Palantir’s AI-driven growth strategy.

Industry forecasts support this optimism. Data analytics firm IDC projects the AI software market will reach $153 billion in annual revenue by 2028, providing a fertile environment for Palantir’s continued expansion.

As AI adoption accelerates across sectors, Palantir’s blend of commercial and government contracts positions it well to capitalize on this booming market.

“With the market for AI software platforms forecast to generate annual revenue of $153 billion in 2028, there is a solid chance Palantir will keep growing at elevated levels thanks to AI,” analysts note.

This combination of strong contract wins, rising revenue, and favorable market trends highlights Palantir’s potential as a leading AI software provider in the coming years.

Palantir's commercial revenue surged 45% in Q2, driven by new AI products and a $795 million Defense Department contract. With IDC projecting a $153 billion AI software market by 2028, Palantir's remaining deal value rose 45% to $6 billion, fueling strong growth and a 63% stock increase this year.