The momentum we are seeing across sectors, both commercial and government, is unlike anything that has come before,” declared Palantir

The AI-focused Palantir joins a group of less than 50 public American companies worth at least $200 billion, quite the turn of events for the government contractor worth less than $20 billion two years ago.

Palantir Technologies Inc.’s hefty premium will be in focus when the data analysis software giant reports earnings after the market close on Monday — with the stock trading at levels some see as difficult to maintain.

Palantir Technologies reported strong revenue growth last quarter as the company that made its name providing software to the U.S. government said demand for its artificial intelligence products continues to expand.

Palantir Technologies Inc (NASDAQ:PLTR) shares are trading higher Tuesday after the company reported better-than-expected financial results for the fourth quarter and issued strong guidance. Several analysts also lifted price targets following the print.

Palantir executives welcomed the advent of low-cost artificial intelligence. Other software stocks could also see benefits from cheaper AI.

Palantir continues to reap the rewards of its decades of AI expertise. The stock is expensive, so investors should exercise care. In the fourth quarter, Palantir generated revenue that accelerated to 36% year over year (and 14% sequentially) to $828 million.