The Next AI Superstock: Defending America

In America, if you’re willing to put in some effort and be smart about it, you can start with nothing and build real wealth. That’s the American Dream in a sentence, and it’s a dream anyone can achieve.

Dr. Thomas Stanley, who spent his life studying America’s millionaires, found that 85% of them built their own fortunes – no inheritance, no special connections. What’s more, he found 72% of those millionaires do not own a business and are not self-employed.

The millionaires I’ve studied take radical responsibility for their success. They take ownership of their financial futures. And with the dawn of a second Trump administration, we could be looking at the most extraordinary economic boom the world has ever seen.

It’s going to be easier than ever to become a millionaire in the next few years. Trump’s first term saw low unemployment across the board, a booming economy and stock market, low interest rates, and cheap energy.

It created an environment that allowed 8 million Americans to become millionaires during Trump’s first term from 2017 to 2021. And I predict Trump’s second term will bring about the “Rebirth of the American Dream” and create 20 million new millionaires – that’s 13,000 per day.

Because Trump is following the same economic blueprint that created the Roaring ’20s, the greatest period of prosperity in American history. During the Roaring ’20s, the unemployment rate fell to 1.8%, the number of millionaires grew by over 2,000%, U.S. manufacturing jumped 40%, corporate profits soared by 62%, and the stock market returned a stunning 265%.

We did all that without inflation, without deficit spending, and without out-of-control money printing. Instead, it was a period of massive tax cuts, budget surpluses, and immense wealth when some of the most iconic companies in American history created incredible wealth and thousands of millionaires.

And that is happening again. There’s a whole generation of new American companies that will make the next generation of American millionaires. The company in this report is one of the finest examples and is also the premier defense contractor for the evolving modern battlefield…

An All-Seeing Eye in the Palm of Your Hand

Artificial intelligence (AI) represents a technological leap as significant as the discovery of fire or the steam engine. It’s nothing less than the defining technology of this era.

Every organization – from your local coffee shop all the way up to national governments and militaries – will be using it in some way before too long. There are as many uses for AI as there are industries and sizes of companies.

Every business can be improved in some way by the adoption of AI. That gives AI a potential customer base in the billions. The vast majority of people work, which means the vast majority of the planet’s 8 billion people can benefit from AI in some way.

And the absolute kingpin of this new technology is Palantir Technologies (Nasdaq: PLTR), the stock that’s locking down some of the biggest customers in the AI market and has the potential to build you a retirement fortune.

If the name Palantir sounds familiar to you, it may be because it’s from J.R.R. Tolkien’s epic, The Lord of the Rings. In the third book, The Return of the King, the Palantir is a magic crystal ball that allows its user to see and communicate over vast distances.

Billionaire Peter Thiel is Palantir’s co-founder. He is the man behind PayPal and was an early investor in Facebook… and he’s a massive Tolkien geek. And when you look at what Palantir’s AI is actually capable of, the company’s name makes perfect sense…

The company’s headline product is called Gotham, an AI operating system that, in simple terms, collects data from numerous sources, ranging from social media posts to satellite imagery, and allows you to make actionable decisions based on all of the information.

It’s far more data than could ever be collected by humans… and it’s pulled together in mere minutes.

Here’s an example of how the software works in practice…

Palantir has put its Gotham software into use on the front lines of the Russia-Ukraine war, and it has fundamentally changed the game when it comes to how wars are fought.

Chinese general, philosopher, and author of The Art of War, Sun Tzu (544 B.C. to 496 B.C.), once wrote, “All warfare is based on deception.” And for thousands of years, getting the drop on your enemy has often been the key to winning battles.

But Palantir has rendered that ancient tactic entirely obsolete…

By any measure, the Ukrainians are outnumbered and outgunned by the vast size of the Russian army. But every time the Russians try to launch a sneak attack on the Ukrainian lines, someone sees it.

It could be through a satellite drifting overhead, a surveillance drone, any one of the Ukrainian soldiers issued with a Palantir sensor to collect data, a traditional scouting unit… or any of the millions of Ukrainians with a phone camera in their back pocket and a Facebook account. Someone will see it, and Palantir will find it and relay it to Ukraine’s military headquarters.

From there, they can pinpoint the exact location of the Russian forces (also using Palantir’s Gotham) and rain down hellfire from rocket artillery and howitzers, stopping the sneak attack in its tracks.

If all warfare is based on deception but if deception becomes impossible, then warfare itself has changed. Make no mistake: Every major power is seeing what’s happening in Ukraine, and it’s set off an AI arms race – one that Palantir is profiting from handsomely.

The AI Arms Race

Governments around the world are scrambling to integrate AI into their military infrastructure. The CIA was an early investor in Palantir, and when you consider the company’s military potential, it should be no wonder why.

And Palantir seems to be the company the U.S. and its allies are going to for their AI integration. In 2022, it was ranked No. 1 in terms of market share and revenue in a worldwide AI study. It’s far and away the industry leader when it comes to AI software.

The company is landing contracts with the military left and right. Most recently, it signed a $100 million contract to expand the capabilities of the U.S. Military’s Maven Smart System.

Maven is the military’s premier AI platform designed for the geospatial visualization of data intended to facilitate improved battlespace awareness, global integration, congested logistics, joint fires, and targeting workflows.

But Palantir is far from a one-trick pony. Its information-gathering and intelligence-generating AI has uses off the battlefield as well…

Maven is also deployed by the U.S. military to aid in relief efforts, most recently in the wake of Hurricane Helene. For FEMA and other first responders, it gathers data – road closures, communications, and unit movements. On the logistics front, it allows for the optimal allocation of resources, like food, water, and medical supplies.

Palantir’s technology can also be fitted to hospital beds and can send data to any nurses or doctors. That way, they can allocate care to the patients who need it faster. The United Kingdom’s National Health Service awarded Palantir a $415 million contract in 2023 to build a new platform for its use.

The AI essentially speeds up the information-gathering process to a rate far faster than the human brain is capable of and allows people to act on good information faster than ever before. And many companies have adopted Palantir’s technology because of that.

Companies and militaries go to Palantir because it works. It’s as simple as that.

Trinity Rail used Palantir’s AI platforms to build an inventory workflow in three months that generated $30 million in savings and improved operating margins…

Amtrak used it to develop automated product classifications for 99% of meal data elements within nine months, which has saved it lots of time and enabled deeper analysis of operations.

Tampa General Hospital has used Palantir’s AI to reduce the length of a hospital stay for patients with sepsis by 15%, getting people back home to their lives and their families faster.

And Nebraska Medicine has seen a 2,000% increase in Discharge Lounge utilization in its facilities after adopting Palantir AI. That frees up beds for new patients sooner.

A few of Palantir’s larger clients are Amazon Web Services, Cintra, Cisco, Intuit, Panasonic, Molson Coors, Hertz, HCA Healthcare, and the Royal Bank of Canada. Those industries range from healthcare to finance to beverages to manufacturing to services… and everything in between.

Even better, Palantir offers an AI boot camp that will teach you how to use its AI programs in five days. That means you can get your entire workforce versed in how to use this technology in a single week.

You might imagine that a company attracting global attention from governments and major corporate clients would have a pretty stellar balance sheet… and you’d be right.

The Kingpin Indeed

Palantir’s latest quarterly report, for the third quarter of 2024, showed it brought in $725.52 million in revenue, up 29% year over year. Net income for the quarter topped $143.53 million, up 100.72% year over year.

And whereas many young tech companies have good revenue but no profits, Palantir is an exception to that rule. Earnings per share in the latest quarter were up 92.91% year over year. And the company has built up a massive war chest of $768.71 million in cash.

Revenue growth like that is easy when you grow your customer count by 77% year over year. In fact, the company has quintupled its customer count over the last three years. The company inked 130 new commercial deals in the U.S. alone, up 27% year over year: 104 of those deals were worth at least $1 million, and 16 of them were worth at least $10 million.

On the back of that banner quarter, Palantir raised its revenue guidance for the full year to between $2.805 billion and $2.809 billion.

And despite all of that, the company trades for just $85. It won’t remain this cheap for long, though. It’s up 428% over the past year and still has plenty of room to grow.

The Supreme Art of War

Allow me to close with another pearl of wisdom from Sun Tzu: “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.”

Palantir is the first kind of warrior.

This company has contracts with the U.S. government and dozens of major companies, all while AI is still in its infancy. Its technology is a big part of how the Ukrainian army has been able to trade blows with the military of a great power, and every other global power has seen its technology doing that.

It was founded by one of the most legendary tech investors in market history. It received early funding from the CIA. And it has all the contacts and friends in high places it needs to become a defense contractor that will be mentioned in the same breath as Lockheed Martin or Boeing.

Both of them were where Palantir is once, and anyone who bought them then would’ve been able to fund their retirement on the share growth alone.

Palantir has as much civilian potential as it does military. You can do the math there, but the solution will always be the same. This Trump Trade is the right stock at the right place and the right time to profit from the kingpin of AI.

Action to Take: Buy Palantir Technologies (Nasdaq: PLTR) at market. Set a 25% trailing stop to protect your principal and your profits.