It wasn't all that long ago that Palantir Technologies (NYSE: PLTR) was toiling away in obscurity, providing data mining and artificial intelligence (AI) services to a select few intelligence agencies within the U.S. government and its allies as a private company. But Palantir's 2020 IPO shined a light on the vast potential for AI, and its stock was off to the races. Then a combination of a lofty valuation, unrealistic expectations, and gale-force macroeconomic headwinds conspired to knock Palantir down a peg or two in 2021 and 2022, ultimately shaving as much as 84% off the stock's value.

Fast-forward to 2023, and the accelerating adoption of generative AI caused a rapid reversal of fortunes, and Palantir is back in investors' good graces. With a current market cap of just $42 billion, it might seem quite presumptive to suggest Palantir is on track to join the $1 trillion club. Still, it's never too early to consider how a company will perform over the long term.

Let's look at Palantir's history, the current environment, and what the company will have to do to become a trillion-dollar company.

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Source Fool.com