Palantir Technologies extended its rally to fresh records this week, leaving the data-analytics group up about 150% since January and roughly 2,500% above its 2020 public-market debut. The share price has climbed sixfold over the past year, far outstripping the 74% gain in Nvidia, the AI sector’s previous pace-setter. The surge has pushed Palantir’s valuation to around 245 times projected 12-month earnings, the richest multiple in the S&P 500 and far above the wider market’s low-teens average. Analysts say the stock now embeds exceptionally strong assumptions for future revenue and profit growth, raising the risk of a sharp repricing if results miss expectations. Derivatives trading underscores the fervour. Options data show implied volatility jumping, with bullish call contracts dominating volumes even as a steep put skew signals that traders are also positioning for large downside swings. The unusual activity suggests investors are bracing for bigger moves—either to extend the rally or unwind it—amid intensifying debate over whether Palantir can convert AI excitement into sustainable earnings.