Nvidia‘s hardware is still the power behind most artificial intelligence (AI) data centers. But hardware is only half the story. Users also need a way to put that computing power to work. That’s where software comes in. And while there are several AI-powered decision-making solutions available, the ones from Palantir Technologies (PLTR -2.14%) are arguably the best. That’s why this stock’s performed so well since the AI movement went into high gear about five years ago.

Leading the AI industry’s growth

If you’ve not kept close tabs on the AI industry’s explosive growth, but the name still rings a bell, it might be because the U.S. Department of Health and Human Services asked Palantir for help managing the monumental task of combating the spread of the COVID-19 pandemic, including the distribution of coronavirus vaccines.

Image source: Getty Images.

That’s not all the company’s tech is capable of, to be clear. Factories, financial firms, logistics outfits, and the military all benefit from its solutions. It was the COVID-19 pandemic, however, that put Palantir on the proverbial map and jump-started its explosive growth.

To this end, had you made a mere $1,000 investment in Palantir Technologies stock right after its September 2020 initial public offering, today that position would be worth just a little over $19,000.

Tough act to follow, but…

That’s an unusually big run-up — even for a game changer like Palantir. But it’s a well-deserved advance. Annualized revenue has grown from a little over $1 billion then to roughly $4 billion now.

Just don’t look for a repeat of this feat over the course of the coming five years.

Still, that doesn’t mean Palantir shares aren’t worth owning here. The AI business is still young, and plenty of organizations don’t even yet realize they need this company’s tech. In this vein, an outlook from Straits Research suggests the decision-making software market is set to grow at an annualized pace of 16% through 2031. Palantir Technologies is well-positioned to win at least its fair share of this growth.