Palantir's 550% stock surge reflects a genuine transformation. They've evolved from a niche government contractor to a potential infrastructure layer for the entire AI revolution. The Q2 results prove this isn't just hype—real businesses are paying real money for transformative results.

Shares of Palantir Technologies (NASDAQ: PLTR) charged out of the gate on Tuesday, spiking as much as 9.8%. As of 10:50 a.m. ET, the stock was still up 8.3%.

AI software firm Palantir saw strong quarterly revenue, but its price-to-earnings ratio could be a warning sign for investors.