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Palantir Technologies (NASDAQ: PLTR) has been around for more than 20 years and in its earlier days was most known for software contracts with government clients. But in recent times, commercial customers have offered this player an exciting new revenue stream, and today, with both government and commercial growth soaring, the future looks bright.

Investors have recognized this, and they've been piling into Palantir shares for quite some time. Last year, the stock surged 340%, posting the best performance in the S&P 500 . In fact, Palantir's share price has climbed so far and so fast that it's found itself at an eye-popping valuation. Still, earnings have continued to march higher and haven't shown any signs of slowing.

Considering this, could buying Palantir today, even at the current valuation, set you up for life? Let's find out.

One of the superstars of the AI boom

So, first, a quick summary of Palantir's business. The company, through its software platforms, helps customers aggregate often the most disparate of data to make better use of it. Palantir has integrated artificial intelligence (AI) into this process and two years ago launched its Artificial Intelligence Platform (AIP). This has made the company one of the superstars of the AI boom as both governments and commercial customers raced to get in on this often game-changing tool.

AIP can be useful in everything from battlefield operations, immediately identifying risks and implementing key plans, to business needs -- for example, customer United Airlines is using AIP for predictive maintenance, helping the airline avoid delays and millions of dollars in costs. How did Palantir reach so many customers so quickly with AIP? The company launched AIP bootcamps, sessions that allow potential users to go from zero to a use case within hours -- so they can see exactly how AIP could benefit their businesses.

All of this has translated into explosive revenue growth, particularly as commercial customers discover that Palantir is no longer a business that primarily serves governments -- instead, its technology has broad applications that also are valuable in the commercial world. In the most recent quarter, U.S. commercial revenue advanced more than 70% to $255 million, and the U.S. commercial business delivered its most valuable quarter, booking total contract value of $810 million. That's up 183% from the year-earlier period.

Growth in government and commercial revenue

As I mentioned, this is as government revenue continues to climb in the double digits quarter after quarter, so Palantir has conserved the growth of its main revenue stream -- the government business -- and added to it with a newer and high-potential revenue stream -- I say "high potential" because companies across industries are aiming to apply AI to their businesses, and Palantir's AIP makes it easy for them to do this.

Importantly, Palantir isn't only focused on revenue gains, but the company also has struck a fantastic balance between growth and profitability -- as seen in its Rule of 40 score. Scores of 40% or higher indicate a software player has balanced these two priorities well, so Palantir's delivery of a score of 83% shows the company is hitting it out of the park. Only about a third of software companies meet this rule, according to McKinsey research, and this further highlights Palantir's accomplishment.

All of this is very positive, but now let's look at the one point that's been a thorn in the side of Palantir and its investors: and that's the stock's valuation. Today, it trades for an eye-popping 219 times forward earnings estimates , making some investors question whether they should buy the stock or even stay invested if they've already bought it. At such a valuation, the risk is any disappointment could hurt stock performance.

Two important questions

So, considering all of this, could this unstoppable (at least so far) stock set you up for life? There actually are two questions here, and the first is: Is Palantir a buy?

If you're a value investor, you're sure to find a stock better suited to your strategy elsewhere. But if you're a growth investor and aim to hold on for at least five years, even at today's high valuation it's worth picking up a few Palantir shares. The forward price-to-earnings ratio we looked at, above, considers potential earnings next year -- but not over the long term. Palantir is well positioned to gain as the AI boom continues over the next several years, so even if the stock dips at certain points here and there, you still may benefit greatly from an investment today.

As for setting you up for life, this growth stock could help -- but it's never a good idea to depend on one stock on its own to do the whole job. It's much too risky to put all of your eggs in one basket. Instead, supercharge your wealth-building power by investing in several quality stocks and holding on for the long haul.

Before you buy stock in Palantir Technologies, consider this:

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