Palantir Technologies (PLTR -0.86%) has emerged as one of the biggest darlings of the artificial intelligence (AI) revolution. Demand for the company’s Artificial Intelligence Platform (AIP), which features Palantir’s Foundry, Gotham, and Apollo software suites, is off the charts from both the public sector and private commercial enterprises.

Currently, Palantir trades at a price-to-sales (P/S) ratio of 74. This valuation comes amid the company’s rapid expansion, with recent quarterly revenue growth exceeding 90% year over year. The question smart investors are asking is what has happened in the past when software-as-a-service (SaaS) stocks reached comparable multiples, even while generating similarly aggressive growth.

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