The growing utility of artificial intelligence (AI) promises to have a profound impact on our lives. While the technology is still in its infancy, generative AI is improving by leaps and bounds, with new use cases littering the landscape.

One of 2024's biggest beneficiaries is Palantir Technologies (NYSE: PLTR). The stock is up more than 240% so far this year and up 820% since AI captured the spotlight in early 2023. Gains of that magnitude have also sent the stock's valuation soaring, making some investors understandably skittish.

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Let's take a look at the driving force behind Palantir's ascent, what Wall Street has to say about the matter, and whether the stock is a buy right now.

Riding the wave of AI

Palantir rose from the ashes of the 9/11 terrorist attack on the premise that siloed intelligence data contained a number of clues that could have prevented the tragedy. Founder Peter Thiel envisioned a system that could pull data from a variety of sources and apply sophisticated algorithms to connect seemingly disparate pieces of information to identify would-be terrorists before they could act. Palantir was the fruit of that vision and became the go-to for U.S. intelligence agencies and our allies.

The company has since expanded beyond its original defense offerings, applying the AI knowledge it developed to serve enterprise companies, using its data mining and business analytics expertise to provide customers with actionable intelligence.

The game-changer came early last year when Palantir introduced its Artificial Intelligence Platform (AIP), which harnesses generative AI to make its systems even more useful to enterprises. By tapping into existing data, AIP can address company-specific issues, providing solutions that might otherwise be missed.

For example, in a demo video, Palantir illustrates how AIP can leverage company data to minimize production disruptions in the face of an oncoming hurricane. The system scrutinizes remaining orders and recommends which ones to accelerate, delay, or cancel. It also suggests which ones should be handed off to other fulfillment centers and how pursuing alternate delivery options will impact backlogs and profits.

In another masterstroke, Palantir took much of the guesswork out of implementing AI solutions by hosting boot camp sessions. "These immersive, hands-on sessions allow new and existing customers to build live alongside Palantir engineers, all working toward the common goal of deploying AI in operations," Palantir wrote. The ability to address real-world business problems has fueled robust demand for these boot camps, resulting in accelerating the conversion of AIP deals.