(Bloomberg) — Shares of Palantir Technologies Inc. hit a record high after the company reported better-than-expected quarterly revenue and raised its operating profit forecast for the current period, citing strong demand in the United States for its artificial intelligence software. .

Shares of the company jumped 23% to $50.98 in New York on Tuesday, the highest level since the company went public in 2020.

Third-quarter sales increased 30% to $725.5 million, the Denver-based company said in a statement Monday. Analysts on average estimated $703.7 million, according to data compiled by Bloomberg. Palantir also reported net income of $144 million, a record for the company.

“Our business growth is accelerating and our financial performance is exceeding expectations as we meet unwavering demand” from government and commercial customers in the United States, Palantir CEO Alex Karp wrote Monday. in a letter to shareholders. “The world is in the midst of a US-led AI revolution that is reshaping industries and economies, and we are at the center of it. »

The company raised its 2024 revenue forecast to around $2.81 billion. Analysts expected $2.76 billion. The company also reported a substantial increase in a closely watched metric: revenue from its U.S. commercial operations, a key driver of sales growth. Palantir expects its U.S. commerce revenue to climb more than 50% this year, to more than $687 million.

Co-founded by billionaire Peter Thiel, Palantir built its reputation working with the US national intelligence community and is now used across all US military branches and by allied forces in Ukraine and Israel. Thiel earned about $US4 billion ($3.94 billion) on his stake in Palantir this year. It has reduced its stake by about a third over the course of this year, including nearly 29 million shares sold in the third quarter.

Palantir’s stock price soared after the introduction of new AI tools last year, becoming a leading stock in the tech industry frenzy. The stock price is up nearly 200% year to date, fueled by demand for its AI software and events such as its recent inclusion in the S&P 500.

The company generated adjusted earnings of 10 cents per share for the period ended September 30, beating analysts’ estimates of 9 cents. It forecast fourth-quarter adjusted operating income of about $300 million, compared with the average estimate of $261.6 million.

Although Palantir counts global organizations like energy giant BP Plc and the U.K.’s National Health Service among its clients, foreign demand for its AI software has been small compared with that in the United States. The company said $499 million of its third-quarter revenue, or about 70%, came from U.S. customers.

“The United States is driving the AI ​​revolution that we’re seeing,” Ryan Taylor, chief revenue officer, said in an interview Monday. Taylor said Palantir closed 104 deals over $1 million during the third quarter, largely thanks to its unconventional sales strategy of holding boot camps to teach customers how to use its tools .

U.S. commercial activities increased 54% to $179 million during the quarter, and U.S. government activities increased 40% to $320 million compared to the same period a year ago .

On a call with analysts Monday, Palantir credited defense spending with helping propel its U.S. government business to the highest quarterly growth in nearly four years. Although the U.S. intelligence community was among Palantir’s first customers, it took nearly two decades to win major government contracts, with partnerships now playing a larger role. Palantir hired former GOP leader and China hawk Mike Gallagher to lead its global defense team in August.

Palantir also expanded its partnership with Microsoft Corp. in August in order to be able to use OpenAI – one of several large language models deployed by Palantir in its AI platform – in classified environments.

During Monday’s call, Karp also touched on the topic of retail investors, who are among Palantir’s most enthusiastic supporters, giving the company near-GameStop levels of respect on the r/PLTR subreddit. “Our individual investors are close to our hearts, and certainly to my heart,” he said. “And you know I love it when you win.”

–With help from Tom Maloney.

(Updates with post-open stock movement in second paragraph and details on Peter Thiel’s participation in sixth paragraph.)

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