Palantir, a data analytics software company, climbed into the top 10 US technology firms by market capitalization after an 8% stock surge on Thursday (May 8), reaching a valuation of $281 billion. This leap pushed it past Salesforce, valued at $268 billion, which previously held the tenth spot. Earlier this year, Palantir also overtook tech stalwarts Cisco and IBM. Palantir’s stock has soared, more than quintupling in value over the past year and gaining 58% in 2025, making it the S&P 500’s top performer for the second consecutive year. While the Nasdaq has declined 7% this year amid tariff concerns and economic slowdown fears, Palantir has defied the trend.Founded in 2003 by Peter Thiel and CEO Alex Karp, Palantir’s growth has been fueled by its government business, which surged 45% to $373 million last quarter, including a $178 million U.S. Army contract for AI-enabled systems. In a shareholder letter, Karp defended the company’s defense work, noting its unwavering commitment to supporting the U.S. military.
Top 10 US Tech Companies by Market Cap
10 most valuable American tech companiesMicrosoft tops the market cap list at $3.3 trillion, followed by Apple and Nvidia. Here are all the 10 names ranked with No. 1 on top and No. 10 at the bottom:* Microsoft* Apple* Nvidia* Amazon* Alphabet* Meta Platforms* Broadcom* Tesla* Oracle* Palantir* Salesforce
Founder Peter Thiel’s Elon Musk link
Peter Thiel is part of the so-called PayPal Mafia — a group of Silicon Valley stars with links to the payments app’s formative period. Thiel reportedly shares a love-hate relationship with Tesla CEO Elon Musk. He is also an investor in several of Elon Musk’s companies, including SpaceX, Neuralink and Boring Co.
Palantir’s valuation has a premium
Analysts say that Palantir’s valuation comes at a premium. Despite its market cap ranking, its revenue and profits lag far behind peers like Salesforce, which generates over ten times Palantir’s revenue. Palantir trades at 520 times trailing earnings, 200 times forward earnings, and 90 times revenue, far exceeding typical large-cap tech multiples.