Palantir Technologies was the best-performing member of the S&P 500 ( ^GSPC -1.11%) in 2024. Its share price surged 340% last year as growing demand for its artificial intelligence platform excited investors. Palantir has grown into a $181.9 billion business, but I think semiconductor comany Arm Holdings ( ARM -2.06%) can top that figure in 2025.

Shares of Palantir (PLTR) dropped more than 5% on Monday as the stock reacted to a new rating from Wall Street. Analysts from Morgan Stanley re-initiated coverage of Palantir with a “sell” recommendation.

Palantir Technologies Inc. PLTR stock had an incredible 2024. The company was not only added to the S&P 500 in 2024, but its 340% return made it the index's best-performing stock. The inclusion boosted demand for its shares,