(Reuters) - Palantir Technologies (NYSE:PLTR)' stock surged 22% on Tuesday, putting it on track for its biggest one-day gain in more than two years, after the data analytics firm said it expected to turn a profit every quarter in 2023 and pointed to massive interest in its new AI platform.
The data analytics software maker, known for its work with the U.S. Central Intelligence Agency, late on Monday reported quarterly results that beat Wall Street's expectations, lifted by bigger projects from existing commercial and government clients.
The first iteration of Palantir's new generative AI platform has attracted interest "unlike anything we have seen" and will be made available to some customers this month, the Denver, Colorado-based company said. The platform uses the same technology behind ChatGPT, the popular chatbot from OpenAI.
The surge on Tuesday drove Palantir's stock to its highest price since mid-February and brings its gain in 2023 to 49%.
Palantir's plan to turn quarterly profits throughout 2023, helped by cost cuts, opens the potential for it to join the S&P 500 index, D.A. Davidson analyst Gil Luria wrote in a client note after the company's results.
In February, Palantir said it would reduce its workforce by 2%, joining several other technology firms that have laid off thousands of workers amid worries about a slowing economy.
More than $1.5 billion worth of Palantir's stock had been exchanged as of midday on Tuesday, putting it among Wall Street's 12 most traded stocks by turnover.