Jim Cramer, the charismatic host of CNBC’s Mad Money, continues to be a major voice in the world of investing. Known for his unfiltered commentary and deep dives into market movers, his stock picks often gain significant attention from both retail and institutional investors.  Among the most notable mentions in his recent discussions is Palantir Technologies Inc. (NASDAQ:PLTR), a company that has become a centerpiece in conversations about data analytics, artificial intelligence, and government tech solutions. In one of his latest segments, Cramer highlighted 12 stocks he believes are currently shaping market trends—and Palantir was front and center.

Palantir has become one of the best-performing stocks in 2025, with its price going up by an impressive 135% so far this year. This rise isn’t just because of excitement or hype—it’s backed by strong earnings reports that show the company is growing well and has a strong future.

Investors often judge software companies using something called the “Rule of 40,” which looks at both how fast a company is growing and how profitable it is. Palantir has done well on both fronts, which is why its stock is trading at a very high price compared to its earnings—a P/E ratio of 589, one of the highest in the tech world.

Jim Cramer recently talked about Palantir and made some light jokes about how the stock briefly fell. But he highlighted one of the company’s biggest strengths—its ontology. In Palantir’s case, this means the way it understands and organizes complex data for big organizations, especially the government.

Cramer said that this ability helps Palantir understand how an organization works better than most other companies. He also talked about Palantir’s CEO, Alex Karp, and said that Karp is different from many other tech leaders because he focuses on using AI responsibly and helping the government work better.

Cramer even compared his respect for Karp to the respect he has for Jensen Huang, the CEO of NVIDIA, although he admitted the two are very different. In past comments, Cramer has also praised Karp for increasing the company’s stock value and mentioned his interesting hobby of pistol shooting competitions, showing that Karp has a unique personality not often seen in business leaders.

Although Cramer has evidently viewed prospects in Palantir, he has been realistic with regard to his analysis as well. He admits that other AI-centric stocks have the potential of providing higher returns in the short term with a lower downward potential, particularly in a market so heavily driven by macroeconomic factors such as tariffs and onshoring—key policies linked to the Trump economic strategy. 

As a matter of fact, Cramer alludes to a free report that identifies a less discussed, highly undervalued AI stock that may end up a big-time victor under these policies. This implies that the value of PLTR as a long-term strategic investment could be perceived as such, though there are other names in the AI field, which, at this moment, could be better situated to generate an explosion in growth.

Now, we should see how Palantir stacks up against the rest of the stocks Cramer touted in his segment. With his most recent selections, the table below points out some of the most significant performers and themes:

Jim Cramer’s Recently Discussed Stocks – August 2025

Palantir Technologies Inc. clearly stands out in this group—not just for its market performance, but for the unique position it holds at the intersection of data, government, and artificial intelligence. 

While companies like Nvidia, Microsoft, and Meta are building the infrastructure or platforms for AI, Palantir is applying AI to real-world problems—especially those related to national security, military intelligence, and operational efficiency within public agencies.

Another point to consider is Palantir’s growing commercial footprint. For years, the company was seen primarily as a government contractor. However, recent earnings suggest its Foundry platform is gaining traction in the private sector as well. This commercial expansion could help diversify its revenue base and reduce dependency on government contracts—a point that long concerned skeptics. Cramer acknowledged this evolution and hinted that Palantir’s future growth story is no longer just tied to defense contracts, but also enterprise transformation.

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