After its stock rocketed on strong demand for its Big Data and AI solutions to government and commercial customers, Palantir expanded its revenue forecast by 17%.

Palantir Technologies stock surged more than 17 percent on Tuesday after the data analytics firm raised its annual revenue guidance for a third time this year. Share value change here is part of a paradigm shift that has become more pronounced in the context of growth of Big Data and need for Palantir services – particularly as more and more companies could abandon to levering Ai in decision making.

However, Palantir's staggering growth was roundly attributed to Big Data solutions in Q3. The commercial segment revenue was up 54%, and US government contract revenues grew by 40% to $725.5 million, giving the commercial segment over 44% of total sales.

Whilst Palantir is still very much in the AI era, their AI platform pushes them forward to be one of the big names in the business space – how relevant companies use the AI to validate their data and continue to build out their military supply chains. The firm expects organic revenue to rise between $2.805 billion and $2.809 billion, surpassing prior guidance.

“Big Data has moved out of being a nice to have resource for analytics and has become the very foundation upon which AI for insights been built for corporate and government use and this is where Palantir has the upper hand,” commented Dan Coatsworth, an investment analyst at AJ Bell.

Even with the analysts projecting great things for Palantir in Big Data and AI, there are still problems with Palantir’s high valuation. Palantir’s forward P/E ratio stands at 95.43, likes of Oracle and Snowflake are trading at much less.