Palantir Technologies (NYSE: PLTR) has seen its share price surge 170% since January as investors have become increasingly confident in the company's artificial intelligence (AI) software. That makes Palantir the third-best performing stock in the S&P 500 (SNPINDEX: ^GSPC) year to date.

Palantir Technologies’ latest quarterly earnings further cemented the software company’s status as a winner from the artificial intelligence boom. The issue is whether even that can justify the stock’s astronomical valuation.

After a 150% rally that’s added about $60 billion in market value, Wall Street thinks Palantir Technologies Inc. has gotten way ahead of itself.Most Read from BloombergOman Sees an Urban Future Distinct From Dubai and Abu DhabiClimate Change Is Killing Buildings in Slow MotionBooming Cambridge Exposes England’s Widening Wealth GapTransportation Policy Gets Left Behind in Presidential RaceHow Kyiv Became a Leader in Digital Services Amid Wartime StrainShares in the company,

In the AI era, Palantir is quickly emerging as a leader, and management now expects U.S. commercial revenue to jump at least 47% this year. However, Wall Street is souring on the stock as Palantir shares have gotten pricey.

Wedbush analyst Dan Ives is out with an early reaction to Palantir's "eye-popping" results, featuring beats across the board.

Palantir Technologies Inc. (NYSE:PLTR) will release earnings results for its third quarter, after the closing bell on Monday, Nov. 4. Analysts expect the Denver, Colorado-based company to report quarterly earnings at 9 cents per share,

Wall Street currently has an average price target of $27.67 on Palantir's stock, indicating about 35% downside. Adobe's one-year average target is $621.15, indicating about 25% upside (both consensus targets are from TipRanks).

Shares of Palantir (PLTR) rose over 20% on Tuesday morning after the data analytics software platform reported third quarter earnings and outlook far above Wall Street’s expectations.

Palantir Technologies shares powered firmly higher in early Tuesday trading Palantir (PLTR) , which was added to the S&P 500 last month, has established itself as key player in the defense industry, with a host of contracts with domestic and international agencies that focus on its data analytics and AI technologies.

Palantir shares jumped in extended trading on Monday after the analytics software provider topped third-quarter earnings estimates and lifted its full-year revenue outlook amid robust demand for its AI offerings.