Bank of America analysts raised their price target on the stock after earnings, citing Palantir's edge in a crowded market. Shares were up 27% on Tuesday.

Palantir executives welcomed the advent of low-cost artificial intelligence. Other software stocks could also see benefits from cheaper AI.

Key Takeaways Palantir Technologies shares soared to an all-time high Tuesday, a day after the company's outlook blew past analysts' expectations on strong demand for its Artificial Intelligence Platform.

Palantir continues to reap the rewards of its decades of AI expertise. The stock is expensive, so investors should exercise care. In the fourth quarter, Palantir generated revenue that accelerated to 36% year over year (and 14% sequentially) to $828 million.