Palantir Technologies and Astera Labs are capitalizing on the artificial intelligence (AI) boom, and reported top- and bottom-line third-quarter results that beat analyst estimates, drawing the attention of Wall Street.

That’s thanks to the robust demand for AI applications by private and government clients. Sales were particularly strong in the U.S. market, with commercial sales up by 54 percent from a year ago and 13 percent from the previous quarter, to $179 million; government revenue was up by 40 percent annually and 15 percent for the quarter, to $320 million.

“We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down,” Alexander C. Karp, co-founder and CEO of the company, said in a statement accompanying the release of the third-quarter results.

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11/25/2023

“Astera Labs delivered strong Q3 results, setting our fifth consecutive quarterly revenue record and growing 47 percent versus the previous quarter,” Astera Labs CEO Jitendra Mohan said in a statement accompanying the third-quarter report.

“Our business has entered a new growth phase with multiple product families ramping across AI platforms based upon third-party GPUs [graphic processing units] and internally developed AI accelerators. With an expanding product portfolio, including the new Scorpio Fabric Switches, we are cementing our position as a critical part of AI connectivity infrastructure, delivering increased value to our hyperscaler customers, and unlocking additional multi-year growth trajectories for Astera.”

Palantir’s shares closed up 23.42 percent on Nov. 5 and are up by 197.67 percent for the year, beating the benchmark S&P 500 Index. Astera’s shares were up by 37.70 percent for the day and 82.72 percent for the year, also beating the S&P 500.

“Palantir’s recent earnings reflect how its strategic AI investments are paying off, particularly by addressing the high-stakes needs of both government and commercial clients,” Cache Merrill, founder of Zibtek, told The Epoch Times in an email.

“Palantir is not like many companies exploring AI for the first time. It has perfected its platforms to address some of the most complex data requirements globally. This enables it to serve its customers well as a strategic partner, as they don’t just need analytics but very actionable intelligence. It’s more than a data tool—a decision engine.”

Chris Dukich, founder of Display Now, a SaaS company, praised Palantir’s business strategy.

“Finding the market fit is a prerequisite, but building the muscle calls for sweat, effort, and an evangelist—Palantir goes through how Ignition cuts through the AI hype to the core of problem-solving, the underlying fundamentals of an AI deployment,” he told The Epoch Times in an email.

“Targeted Cortexts dashboards dovetailed with access to organization data sets, shifting deployment from science fiction to reality. The disguise of an agnostic general purpose strong narrative turns into innovation by Palantir as one or a set of AI push grounds, an innovation tier to the revenue-generating plans.”

Merrill said Palantir’s commitment to transparent, understandable AI provides a further appeal, evidenced by the company’s emphasis on AI explainability.

“They aren’t just earning credence from constituencies but developing a standard, and perhaps an expectation, for ethically responsible AI use, something which may prove useful in government and private industries,” he said.