Asserting that Palantir Technologies Inc. (PLTR) had delivered "fantastic" first-quarter results earlier this month, veteran investor Kevin Simpson noted on Friday that he had acquired shares of the very expensive tech name.

Simpson, the founder and Chief Investment Officer of Capital Wealth, made the statements on CNBC.Palantir PLTR Stock Alex Karp

Simpson Is Thrilled With PLTR's Q1 Performance

The revenue generated by PLTR's commercial business surged 70% last quarter versus the same period a year earlier, he noted.

Palantir is "not just reliant on government contracts (anymore), which... were  up handsomely in the first quarter," Simpson added.

Simpson's Additional Comments on Palantir Technologies Inc. (PLTR)

Addressing PLTR's extremely high valuation, the investor said PLTR "certainly has to grow into that multiple." He added that the shares are "a little bit more volatile" than names that he usually owns.

Simpson also noted that he "can write covered calls against" Palantir Technologies Inc. (PLTR) "and bring in massive premiums."

The Recent Price Action of PLTR

In the last month, the shares have climbed 27%, but they are flat in the last three months.

While we acknowledge the potential of PLTR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey.

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