Palantir shares on a tear: Why Swiss investors are now betting big on the AI powerhouse

You don't have to be a fervent admirer of CEO Alex Karp to understand the fascination currently surrounding Palantir Technologies. While other tech firms are still philosophising about whether artificial intelligence actually makes money, the Denver-based data analyst is simply delivering the goods. And it seems this message has now landed with institutional investors in Switzerland, too.

Switzerland takes notice: Swiss Life jumps on board

While the Palantir share price has seen plenty of volatility in recent weeks – not surprising given its triple-digit P/E ratio – there's a clear signal coming from the insurance sector. Swiss Life Asset Management Ltd increased its stake in Palantir Technologies by a solid 5.6 per cent in the third quarter. Some 858,000 shares, worth around US$156 million, are now sitting in the Zurich-based firm's portfolio. That's not small change; it's a statement. They want a piece of the action as the US government and its allies build their defence and intelligence infrastructure on the foundation of Palantir's software.

Numbers that speak volumes: +70 per cent revenue growth

Let's look at the tangible stuff. The fourth-quarter 2025 results were an absolute cracker. Revenue shot up 70 per cent to US$1.41 billion, while earnings per share comfortably beat expectations at US$0.25. If you're thinking that's just down to a low base from the previous year, have a look at the core US business: commercial revenue there jumped a massive 137 per cent. So the company has finally managed to turn the stock market's AI euphoria into genuine commercial contracts. And what does that mean for the full year? Management is forecasting revenue of US$7.19 billion for 2026 – growth of over 60 per cent.

Analysts follow suit: big financial houses pile in

Of course, numbers like these don't go unnoticed by analysts. Particularly interesting: some of the most respected analyst firms have recently upgraded Palantir again – and this despite the share price having had a decent correction beforehand. One analyst, close to the Zurich financial scene and a long-time follower of the company, lifted his price target to US$200 and remains firmly a buyer. His reasoning? Demand for AI and data infrastructure is exploding, and Palantir Technologies, with its Artificial Intelligence Platform (AIP), sits right at the junction where the money is flowing. Another major investment bank sees a "sales upside" scenario of 80 per cent by year-end. So it's little wonder that, despite all the volatility, the analyst consensus sits at "Moderate Buy" with an average price target of just under US$200.

The philosophical backbone: Why Karp rails against pizza apps

Things get even more interesting than the raw numbers when you understand why the business is performing so well. Alex Karp, the man in the tracksuit with a PhD in philosophy, has co-written a book with Nicholas Zamiska: "The Technological Republic: Hard Power, Soft Belief, and the Future of the West". It sounds like heavy going, but it's the blueprint for the company's strategy. In it, Karp delivers a ruthless takedown of Silicon Valley, which he believes has lost its way with social networks and pizza delivery apps. His thesis: the true purpose of the tech industry is the defence of the West.

Instead of copying Meta and Google, Palantir has from the start backed the hard currency: contracts with the Pentagon, intelligence agencies, and now the US Army. As the world becomes more uncertain, Palantir becomes systemically important. The recent contracts – like the multibillion-dollar deal with the US Army or its integration into the Marines' shipbuilding initiative "ShipOS" – are living proof. Karp doesn't see data as a plaything for advertisers, but as a patriotic asset.

The dilemma of success: Between hype and hard reality

Of course, it would be misleading to pretend this is a sure thing. The Palantir share price remains a pretty rough ride. A price-to-earnings ratio north of 200 is breathtaking and sounds a note of caution. The insider sales – not least from Karp himself – are hardly a vote of confidence for shareholders. And a glance at the global situation shows: this isn't peacetime. Observers from the US tech sector recently raised their price target to US$200, explicitly citing increased demand for "war technology". It's a grim backdrop for a brilliant business.

Nevertheless, for investors who take the character of a company as seriously as its balance sheet, Palantir is a unique phenomenon. It's the perfect embodiment of the new tech patriotism. Swiss Life has recognised that. Now we'll see if the bet pays off. At the very least, the signs are pointing to growth.

• Q4 2025 revenue: US$1.41 billion (+70% year-on-year)
• 2026 forecast: US$7.19 billion revenue
• Analyst consensus: Moderate Buy
• Price target (recent analyst estimates): US$200
• Most spectacular detail: US commercial business grew 137%