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.

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.

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,

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

Key Takeaways Palantir's stock is surging after its latest results beat Street expectations.Analysts worry the company may be overvalued, with many maintaining sell or equivalent ratings despite a strong quarter.

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.