Palantir's astronomical growth in 3 charts

The stock last traded below $10 in May 2023, before beginning a steady climb higher.Retail investors are a key part of the stock's strength.Last month, retail poured $1.2 billion into Palantir stock, according to data from Goldman Sachs.Here's a closer look at Palantir's growth over the last five years and how the company compares to megacap peers.Government moneyGovernment contracts have been one of Palantir's biggest growth areas since its inception.Last quarter, the company's U.S. government revenue grew 53% to $426 million

Those revenues in the U.S. grew 93% last quarter, Palantir said.Still, one of the company's oldest customers is the U.S

In May, the Department of Defense boosted its agreement with Palantir for AI-powered battlefield capabilities by $795 million."We still believe America is the leader of the free world, that the West is superior," Karp said on an earnings call earlier this month. "We have to fight for these values; we should give American corporations, and, most importantly, our government, an unfair advantage."Beyond the U.S.The U.S. has been a key driver of Palantir's growth, especially as the company scoops up more contracts with the U.S. military.Palantir said the U.S. currently accounts for three-quarters of total revenues

But Palantir makes a fraction of the revenue of the companies in those lists.Last quarter, Palantir reported more than $1 billion in quarterly revenue for the first time, and its forward price-to-earnings ratio has surged past 280 times.By comparison, Apple and Microsoft posted revenue of $94 billion and $76 billion during the period, respectively, and carry a PE ratio of nearly 30 times.Forward PE is a valuation metric that compares a company's future earnings to its current price

The higher the PE, the higher the growth expectations or the more overvalued the asset

A lower price-to-earnings ratio suggests slower growth or an undervalued asset.Most of the Magnificent Seven stocks, except for Nvidia and Tesla, have a forward PE that hovers around the 20s and 30s

Nvidia trades at more than 40 times forward earnings, while Tesla's sits at 198 times.At these levels, investors are paying a jacked-up premium to own s of one of the hottest AI stocks on Wall Street as its valuation has skyrocketed to astronomical heights."This is a once-in-a-generation, truly anomalous quarter, and we're very ud," Karp said on an earnings call ing Palantir's second-quarter results. "We're sorry that our haters are disappointed, but there are many more quarters to be disappointed."CNBC's Gabriel Cortes contributed to this story.watch now3:3403:34Palantir is 'more than a meme,' it's an AI winner: Piper Sandler's BracelinClosing Bell