Palantir Technologies (PLTR -1.03%) shareholders have been living the dream, as the stock soared 61% in November, according to data provided by S&P Global Market Intelligence.

The catalyst that initially lifted the stock last month was the artificial intelligence (AI) and data mining specialist's blockbuster financial results, but other more recent developments helped fuel its ongoing rally.

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A trifecta of good news

In the third quarter, Palantir's growth accelerated for the fifth consecutive quarter, while its streak of uninterrupted profitability continued. Revenue of $726 million grew 30% year over year, driving earnings per share that soared 100% to $0.06, making its eighth consecutive quarter of profitability -- but that tells just part of the story.

The primary driver of its growth is Palantir's Artificial Intelligence Platform (AIP), which uses company-specific data to solve real-world business problems. The company hosts boot camp sessions, which pair customers with Palantir engineers to ensure they get the most bang for their buck. These have been so successful that U.S. commercial revenue -- which includes AIP -- jumped 54% year over year.

Furthermore, the segment's customer count rose 77%, pushing its remaining deal value (RDV) up 73%. When RDV is growing faster than revenue, it illustrates the upward trajectory of future growth. It didn't hurt that Palantir increased its full-year guidance for the third time in as many quarters.

Investors cheered the results, and Wall Street scrambled to update its projections. In the wake of its robust results, several analysts boosted their price targets to new highs. Wedbush analyst Dan Ives was among the most bullish, maintaining a buy rating and increasing his price target to $75, which represents about 13% upside compared to Monday's closing price. Ives wrote, "Under a Trump Administration, we expect major AI initiatives within the U.S. government, including the Department of Defense, that would also be a major tailwind from AI players like Palantir." That's in addition to any headwinds from the commercial adoption of AI.

The final factor that helped fuel Palantir's rise was the announcement that Palantir was transferring its stock to the Nasdaq exchange, effective Nov. 26. This followed the company's addition to the S&P 500 in September.

In a press release, Palantir noted that it "anticipates meeting the eligibility requirements of the Nasdaq-100," adding: "If that occurs -- and we don't yet know if it will -- it won't have any impact on the company's operating or financial results, but it could increase demand for the stock. Index and exchange-traded funds that track the index will need to buy Palantir shares if it's added to the index, putting upward pressure on the stock price.

Is Palantir a buy? It depends...

As with so many things, there's no one answer to the question, "Is Palantir a buy?" Much of that determination will depend on who you are as an investor.

The stock currently trades for 175 times forward earnings and 43 times forward sales, which is enough to send some investors running for cover. However, the most-often used valuation metrics fail to factor in Palantir's accelerating growth. Applying the more appropriate forward price/earnings-to-growth (PEG) ratio -- which takes into account Palantir's soaring growth rate -- its valuation comes in at 0.54, when any number less than 1 is the standard for an undervalued stock.

For investors who have an appropriate long-term investing time horizon and a cast-iron constitution, Palantir is worth a look, despite its lofty valuation.