Palantir: The AI boom powers up the financial statements
There is much talk about artificial intelligence. Palantir is now delivering impressive figures to back it up. The US software group reported on November 2 that third-quarter revenue jumped 96% to USD 2.31 billion. Revenue rose a further 20% compared with the previous quarter. This took the company’s quarterly revenue above the USD 2 billion mark for the first time. Business with American companies is developing particularly dynamically: revenue here rose 148% to USD 984 million.
This is also remarkable because Palantir was long associated primarily with government clients. Now, revenue from American businesses has exceeded revenue from US government agencies for the first time. This segment is also performing strongly. Revenue from American government agencies climbed 96% to USD 953 million. Expansion is therefore being driven by both customer groups.
Added to this is high adjusted profitability. Palantir reported adjusted operating profit of around USD 1.43 billion, corresponding to a margin of 62%. This metric excludes share-based compensation, among other items, and must therefore not be equated with unadjusted operating profit. The management also raised its full-year revenue forecast to growth of around 91%.
For investors, the appeal lies in the fact that demand for AI applications is already translating into actual business deals and sharply rising revenue. Palantir therefore no longer has to justify the economic benefits of its technology solely through visions of the future. The latest figures provide tangible arguments.
However, strong operating performance does not make every entry price attractive. Those who extrapolate such growth rates set the bar high for the coming quarters. Even slowing momentum can trigger disappointment, even as the company continues to grow. A decision to buy therefore always requires a sober look at the valuation alongside enthusiasm for the business.
This is especially true given the share’s demanding valuation, despite all the excitement about growth. The estimated P/E ratio for the current year is around 120. For next year, the valuation metric still stands at just over 78 despite a jump in earnings. International analysts nevertheless remain optimistic. A total of 27 banks and research firms currently rate the shares a Buy. 7 analysts recommend Hold, while 2 recommend Sell. The average price target of USD 219 still implies around 25% upside potential. On balance, Palantir remains an exciting growth stock for bold long-term investors.
HPQ Silicon: An exciting stock with high potential
At HPQ Silicon, the focus is on a different stage. The Canadian technology specialist is increasingly focusing on silicon-based anode materials for batteries. Demanding applications in drones, defence and aviation are particularly interesting. Hydrogen and fumed silica complement the portfolio. The strategy is thus taking shape. What matters now is whether technical advances can be translated into an economically viable business.
A key role is played by the French company Novacium SAS. According to the half-year financial statements as at June 30, 2026, HPQ holds a 36.8% stake and has options to increase it. Added to this are the corresponding North American marketing rights for Novacium’s battery and hydrogen technologies. HPQ thus has both a stake in its technology partner and its own regional foothold for subsequent commercialisation.
An important step was achieved with the ENDURA+ GEN4 cell. The certified configuration has a nominal capacity of 6,500 milliampere-hours or 23.4 watt-hours. Safety certification under UL 1642 was achieved in July. Transport certification under UN 38.3 followed in August. This allows the cells to be shipped to potential customers worldwide and included in their qualification programmes.
This is essential for further development. An additional laboratory record attracts attention. Testing by the eventual user, by contrast, determines whether a technology is actually suitable for its products. The batteries must prove themselves under the respective operating conditions. Only then can a basis for a reliable supply relationship emerge.
Initial orders give grounds for confidence. The French army ordered battery packs with GEN3 cells for its FPV drones. In September, drone manufacturer Alta Ares placed an initial order for more than 100 battery packs. Delivery was scheduled by the end of September, but has not yet been confirmed as fully completed. The order demonstrates interest. Whether this becomes regularly recurring business depends on the results of operational use and qualification.
Additional attention comes from the agreement with Aptera Motors. The manufacturer of solar-powered electric vehicles plans to examine the GEN4 cells in the laboratory. Testing is to cover energy density, charging behaviour, service life and safety, among other aspects. This gives HPQ access to another demanding application. Particularly where range and energy efficiency are crucial, more powerful batteries can offer an interesting approach. However, Aptera has agreed to an evaluation; this does not yet entail a binding supply commitment. For the stock market story, the test is a meaningful step forward, because another potential user is examining the technology more closely. Only the results and possible follow-up agreements will reveal its economic significance.
Support for industrial expansion is coming from the Canadian government. To develop a domestic production platform, the government has pledged up to CAD 3 million. The aim is to produce 50 tonnes of anode material annually. This scale describes a development target and not capacity that is already installed and operating reliably. The funding thus facilitates the path to industrialisation. HPQ has yet to demonstrate reliable series production.
This is precisely where a key driver for the share lies. There is a considerable difference between a technically interesting development and an industrial product that is ordered repeatedly. Confirmed deliveries, follow-up orders and reproducible manufacturing would create the basis for assessing HPQ more closely on concrete business prospects. Until then, the valuation remains substantially shaped by expectations of market entry.
The other activities provide additional options. Hydrogen is still in development and should therefore be weighted cautiously for now. In third place is Fumed Silica, or pyrogenic silica. The joint venture HPQ Silica Polvere, in which HPQ and PyroGenesis each hold 50%, is working on commercialisation. However, this process is taking longer than originally hoped. The investment story therefore clearly centres on battery materials.
Overall, the story is becoming more tangible. Certifications facilitate customer access, initial orders create practical starting points, and ongoing tests open up opportunities for further applications. What matters now is turning these into predictable revenues. If the transition succeeds, the share has considerable re-rating potential. If successful, the share is likely to see significantly higher prices. For investors willing to take risks, HPQ Silicon is therefore a speculative and promising portfolio addition.
Amazon: The cloud makes the difference
How demand for technology can already pay off on a large scale is demonstrated by Amazon. The US group increased its revenue in the third quarter by 12% to USD 201.9 billion. Operating profit rose from USD 17.4 billion to USD 28.1 billion. At 13.9%, the operating margin reached a company record.
AWS performed particularly strongly. The cloud division increased its revenue by around 39% to USD 46 billion. Its operating profit reached USD 17.8 billion and thus contributed significantly more than half of the group’s operating profit. The figures underline how strongly this business segment now shapes earnings performance.
However, the expansion costs enormous sums. Over the past 12 months, free cash flow was negative at USD 42.4 billion. Amazon attributes this primarily to significantly higher capital expenditure, particularly in connection with artificial intelligence. For the full year, management continues to expect cash capital expenditure of around USD 220 billion.
Demand is already reflected in substantial revenues and operating profits. At the same time, the additional capital deployed must generate an attractive return over the coming years. Good quarterly figures answer this long-term question only partially.
That is precisely why it is worth tracking the development of free cash flow alongside profit. A company can earn ever more from its operations and still consume substantial funds during a major expansion phase. What matters for long-term investment success is the additional income the investments generate later.
According to analysts’ estimates, the P/E ratio for 2027 is just under 22, and around 20 for 2028. Given Amazon’s strong market position, this is not overpriced. Pullbacks therefore remain buying opportunities for long-term investors. The average price target is USD 323, representing upside potential of just under 30%. Overall, 62 analysts currently recommend the share a Buy, while only 2 recommend Hold. There are no Sell recommendations.
Amazon thus offers exposure to technology growth where the existing business already provides a broad economic foundation. New capacity can enable further growth. Whether this also produces an attractive share return, however, depends as much on the entry price as on subsequent business success.
Conclusion
Palantir is turning the AI boom into rapid growth. However, the AI specialist commands an ambitious valuation. Nevertheless, the stock remains interesting for bold long-term investors. For new investors, pullbacks offer opportunities to build positions. Amazon benefits from the strong earnings power of its cloud division. At the US company, a very strong market position and high cloud earnings coincide with enormous investments. For long-term investors, share price declines remain buying opportunities. HPQ Silicon is particularly exciting, with progress towards commercialisation increasingly gathering pace. Certified battery cells, initial orders and tests at potential customers give the story more substance. If these turn into recurring orders and reliable production, this could trigger a significant re-rating and provide the next share price catalysts. Although the commercial breakthrough has yet to materialise, HPQ offers risk-tolerant investors a promising opportunity to position themselves early.
Conflict of interest
This article is an advertisement and has been produced and published by Apaton Finance GmbH („Apaton“) on behalf of HPQ Silicon Inc. („Issuer“) For this service, Apaton receives compensation from the Issuer in the amount of EUR 821,43.
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a “Transaction”). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
In this respect, there is a concrete conflict of interest in the reporting on the companies.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is also a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
