Shares of Palantir Technologies (NASDAQ:PLTR) tumbled 12% Tuesday morning after the artificial intelligence data analytics firm handily beat analyst first-quarter revenue and earnings forecasts while also raising its full-year outlook.

Palantir stock crashed after the company reported its first-quarter financial results. Management highlighted continued demand for its artificial intelligence platform, AIP. Dan Ives at Wedbush says Palantir will be a trillion-dollar company in two or three years.

After the closing bell on May 5, Palantir (PLTR) reported its highly anticipated Q1 2025 results, which beat analysts’ revenue and earnings estimates. Despite the upside surprise, PLTR shares fell about 12% on Tuesday as investors reacted to the news.