While the operational momentum is clearly solid, investors should pay closer attention to the risks. History shows Palantir stock can fall hard as sentiment shifts.

One of the most encouraging signs for long-term investors is that growth is coming from both sides of the business. For perspective, U.S. commercial revenue grew 93% year over year, and U.S. government revenue grew 53% from a year ago.

If you've not kept close tabs on the AI industry's explosive growth, but the name still rings a bell, it might be because the U.S. Department of Health and Human Services asked Palantir for help managing the monumental task of combating the spread of the COVID-19 pandemic, including the distribution of coronavirus vaccines.