The 2024 Q4 earnings cycle continues to roll along, which has overall remained positive so far. We’ve heard from a fair chunk of companies, with the reporting dockets in the coming weeks just as stacked.

And concerning positivity, AI-favorite Palantir PLTR knocked it out of the park in its quarterly release, with share soaring post-earnings.

Interestingly enough, another big player in the AI frenzy, ARM Holdings ARM, is also on the docket this week. Let’s take a closer look at Palantir’s blowout results and expectations for ARM.

Palantir Shares Melt Higher

Palantir’s results came in notably strong, exceeding headline expectations and posting serious growth. Sales of $828 million shot 36% year-over-year and, more impressively, 14% sequentially. The strong sales growth was headlined by a 43% move higher in Customer count, reflecting the snowballing demand the company has been witnessing.

Further, the company closed a record-setting $803 million of U.S. commercial total contract value (TCV), which shot 130% higher year-over-year and 170% sequentially. U.S. results were jam-packed with positivity, with Commercial and Government revenue growing by 64% and 45%, respectively.

Continued robust results have led shares to an outstanding 520% gain over the last year, crushing the S&P 500.

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“Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution. Our early insights surrounding the commoditization of large language models have evolved from theory to fact,” said CEO and co-founder Alexander Karp.

Overall, Palantir’s growth story has been inspiring, fueled by the AI revolution that we’ve all come to love. Given the consistently robust demand, it’s reasonable to expect further share momentum, with the stock also sporting a favorable Zacks Rank #2 (Buy).

Can Arm Follow Palantir?

Arm architects, develops, and licenses high-performance, low-cost, and energy-efficient CPU products and related technology, on which many of the world's leading semiconductor companies and OEMs rely to develop their products.

Analysts have been silent concerning headline expectations, with the company expected to see 17% EPS growth on 15% higher sales. The quarterly results that the company has posted in its short history of being public have been primarily positive, exceeding the Zacks Consensus EPS estimate by an average of 17% across its last four releases.

Up more than 120% over the last year, Arm shares have outperformed in a big way. Quarterly results have regularly brought big post-earnings moves given its high-growth nature.

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Its latest set of results saw a boost from strong royalty revenue, with Armv9 (its most advanced technology) penetration in smartphones growing rapidly. Notably, revenue from chips based on Armv9 technology contributed around 25% of royalty revenue in the period, compared to the same mark at 25% in the period before and 20% in the period prior to that.

Royalty revenue will again be a focal point in the release, particularly as the penetration of its Armv9-based chips continues to grow.

Bottom Line

We continue to wade through the 2024 Q4 cycle, with AI favorite Palantir PLTR posting considerably strong results this week. Palantir’s momentum is undeniable, and the stock remains a prime selection for those seeking exposure to AI.

Another popular pick from the frenzy, Arm Holdings ARM, is on the reporting docket as well this week, with analysts remaining silent concerning estimate revisions. Continued strength within Royalty revenue will be a big tailwind for its results, with continued smartphone penetration also a big focal point.

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