Palantir has soared 74% this year alone. 3 reasons why it's been one of the world's best megacaps.

Jemal Countess/Getty Images for Jacob Helberg

• Palantir is the second-best-performing stock in the S&P 500 in 2025.
• Shares are up 74% year-to-date, trouncing the broader index as well as other tech stalwarts.
• Government deals, AI hype, and retail bullishness are factors that have lifted shares this year.

Palantir stock is crushing the broader market and it's not even close.

Shares of the AI-powered software company are up 74% year-to-date, trading around $132 on Thursday.