Palantir shares surged north by more than 27% on Tuesday after the company reported quarterly earnings that CEO Alex Karp called “otherworldly” in a call with analysts Monday evening.

While some analysts were quick to frame the nearly 30% pop as recovery from a sell-off through June and July that saw Palantir wrapped into the doubts around the staying power of the software sector, the run-up extends a rally going back to 2024 that has seen the stock price boom from roughly $25 to more than $150 per share in only two years.

That shift in share price can really be traced back to the 2023 launch of Palantir’s AIP platform, said Louie DiPalma, an industrials sector analyst at William Blair.

The…