Shares of the data-analytics firm have tumbled on expectations that the Trump administration will cut defense spending.

Palantir shares surged Monday as Wedbush analysts called it one their "top names" to own in 2025, expecting it to benefit from a "tidal wave of spending on AI."

To illustrate, consider that Palantir generated $2.87 billion in revenue last year. If the company grows its revenue by 30% annually for the next five years, its top line will reach $10.65 billion. Apply a 30% profit margin -- which would be a significant expansion from current levels -- and you get $3.20 billion in annual earnings.