As the S&P 500 reaches a new all-time high, investors are looking for promising opportunities in the artificial intelligence (AI) industry. While the "Magnificent Seven" stocks dominate headlines, one company that stands out is Palantir Technologies. With its recent growth beyond the legacy government business and the release of its successful AI Platform (AIP), Palantir has captured the interest of the private sector.

While big tech giants like Microsoft, Amazon, and Alphabet are often associated with AI, investors should note that other companies are emerging as leaders in this evolving market. Despite being smaller compared to its counterparts, Palantir is considered one of the top AI software providers available.

For years, Palantir primarily focused on government contracts and was viewed as a government contractor by investors. However, the launch of Palantir's AIP last year marked a significant development for the company. To market the new AI software, Palantir organized "boot camps" where prospective customers could demo its products and explore use-cases for AI. This creative lead generation strategy has resonated well with customers, leading to a 23% increase in private sector revenue in the past year, surpassing its legacy government business.

While the benefits of the boot camps are yet to be fully realized, Palantir has ample opportunities to improve customer unit economics by upselling and cross-selling new products and services. This has the potential to further boost the company's revenue and profitability over the long term.

In terms of valuation, Palantir's price-to-sales (P/S) multiple of 18.2 is in line with other enterprise software companies like ServiceNow and MongoDB. This valuation is particularly intriguing considering Palantir's substantial growth in the private sector, reduced reliance on government deals, and strengthened balance sheet, thanks to robust free cash flow and liquidity.

With the demand for generative AI applications and Palantir's unique position in both the public and private sectors, the company appears to be emerging as a leader in the enterprise tech space. While investor attention may be focused on larger tech behemoths, Palantir represents an under-the-radar AI opportunity.

As markets continue to soar, the long-term potential of AI-driven trends could contribute to further gains. Investors who employ a dollar-cost averaging strategy and build a long-term position in Palantir could potentially capitalize on this opportunity.

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In conclusion, as the S&P 500 reaches record highs, Palantir Technologies stands out as a promising AI stock. With its impressive growth and disruptive presence in the AI market, the company could be on its way to joining the prestigious S&P 500 index. Investors should consider Palantir's potential for long-term dominance in the AI industry.