We recently released a list of 10 high growth cybersecurity stocks to buy. In this article, we will examine how Palantir Technologies Inc. ( NASDAQ: PLTR ) compares to other high growth cybersecurity stocks to buy.
The cybersecurity industry is experiencing unprecedented growth, fueled by increasing cyber threats, the expansion of cloud computing, and the adoption of artificial intelligence ( AI ) in security measures. In the modern era, security is one of the most crucial sectors, according to Cybersecurity Ventures, whose world crime problems are projected to rise to$ 10 trillion annually by 2025 from$ 3 trillion in 2015. As attacks grow in speed and intelligence, businesses, governments, and individuals are investing heavily in security solutions to lessen risks.
The global cybersecurity market is expected to grow from$ 172.24 billion in 2023 to$ 562.72 billion by 2032, reflecting a compound annual growth rate ( CAGR ) of approximately 14.3 %, according to a report by Fortune Business Insights. This rapid growth is driven by increased saving across sectors, particularly in industries such as finance, medical, and state, where data protection is paramount.
The fall of ransomware attacks is a more accelerating of the demand for cybersecurity solutions. Ransomware attacks have significantly increased in recent years, with 2024 marking a record high of 5, 263 incidents—the highest level observed since 2021 according to a new report from security consulting firm, NCC Group. Big companies and critical equipment have been the targets, with some ransom payments reaching tens of millions of dollars. For example, Colonial Pipeline paid$ 4.4 million in Bitcoins following a damaging attack in 2021, highlighting the need for strong protection measures.
Additionally, spending on sky security is growing exponentially. According to Gartner, global information security end-user spending is projected to total$ 212 billion in 2025, marking a 15.1 % increase from$ 183.9 billion in 2024. A significant contributor to the rise in cloud security spending is the integration of artificial intelligence ( AI ) into cloud infrastructures. A recent survey in the 2025 Cloud &, AI Index indicates that 89 % of U. S. IT decision-makers plan to boost their cloud budgets in 2025, primarily to support AI workloads
A significant talent shortage continues to be a concern for the security sector. According to the 2023 ISC2 Cybersecurity Workforce Study, the global security labor reached 5.5 million experts, an 8.7 % increase from the previous year. Despite this expansion, the review found that there was a 4 million professional workforce gap that was required to adequately protect an organization’s most important possessions.
We used a stock screener to compile a list of the top 10 high-growth cybersecurity stocks to buy in order to find businesses with a market cap of more than$ 2 billion and at least 20 % growth in revenue over the previous five years. From this choice, we finally narrowed down the top 10 companies based on the level of wall fund interest. In Q4 2024, these stocks were ranked based on attitude from hedge funds.
Why do we care about the companies that hedge funds invest in? The basic reason is that our research has demonstrated that we can outperform the market by imitating the best wall cash ‘ stock picks. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4 % since May 2014, beating its benchmark by 218 percentage points ( ).
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Variety of Hedge Fund Holders: 63
Palantir Technologies Inc. ( NASDAQ: PLTR ) is a leading software company focused on supporting counterterrorism investigations and operations. The company offers cutting-edge solutions ranging from cloud-agnostic equipment like Apollo to complex intelligence analysis using Gotham and Foundry.
In December 2024, Palantir Technologies Inc. ( NASDAQ: PLTR ) entered a strategic partnership with Booz Allen Hamilton to accelerate innovation in defense missions. They merged their expertise in AI and security to improve the security of data connectivity and analysis for the U.S. Department of Defense. As industry experts speculated on the effects of a proposed 8 % monthly decline in the defence budget, the company experienced a sharp decrease in share price in February 2025. This development could affect Palantir Technologies Inc. ( NASDAQ: PLTR )’s lucrative contracts with the Department of Defense.
Palantir Technologies Inc. ( NASDAQ: PLTR ) had strong performance for the full fiscal year 2024, with total revenue growing 29 % year-over-year to$ 2.87 billion. U. S. revenue saw impressive growth, up 38 %, driven by a 54 % increase in U. S.commercial revenue, which reached$ 702 million, and a 30 % rise in U. S. government revenue, totaling$ 1.20 billion. Adjusted free cash flow increased to$ 1.25 billion while the business generated$ 1.15 billion in cash from businesses. One of the best higher growth shares in the security industry is PLTR.
With a Strong Buy rating and a price target of$ 121, Loop Capital analyst Mark Schappel has begun coverage of the stock.
On our list of security stocks with high growth to purchase, PLTR comes in fifth overall. While we acknowledge the value of PLTR as an investment, we are more convinced that some AI companies have greater potential for delivering higher earnings and doing so in a shorter amount of time. Check out our report on the cheapest AI property if you’re looking for one that is more appealing than PLTR but trades for less than 5 times its income.
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