Jim Cramer Takes A Shot At Journalists, Says Palantir Is Proving The AI Story Is Real: 'It's All AI Here'

Palantir Technologies Inc PLTR is proving the AI story is real, according to CNBC’s Jim Cramer.

What Happened: Palantir beat analyst estimates on the top and bottom lines in the second quarter as revenue jumped 27% year-over-year, driven by a 55% year-over-year increase in U.S. commercial revenue.

Palantir’s customer count grew 41% year-over-year and 7% on a quarter-over-quarter basis as business growth continued to reaccelerate on “unrelenting” AI demand.

“Our growth across the commercial and government markets has been driven by an unrelenting wave of demand from customers for artificial intelligence systems that go beyond the merely performative and academic,” said Alex Karp, co-founder and CEO of Palantir.

Why It Matters: Tuesday on CNBC’s “Squawk On The Street,” Cramer explained that investors have begun to question the AI story because journalists have started characterizing the rise of AI as hype. He argued that Palantir and other recent reports show that the AI boom is real.

“It’s all AI here, and Lumen’s all AI. We have this one scan of thought from journalists which is, ‘Look, AI turned out to be a joke, and Nvidia up 1,000%, what was that all about? I’m glad that’s over,'” Cramer said.

“And then we have Alex Karp talking fantastic about AI and Lumen having $5 billion in AI orders. So is it really a joke?”

See Also: Palantir’s ‘Game Changer Quarter’ Proves AI Monetization On Global Demand, Says Tech Bull: ‘Use Cases Are Exploding’ For Messi Of AI

Palantir closed 27 deals worth more than $10 million during the quarter and Lumen Technologies Inc LUMN announced that it secured $5 billion in new business from customers looking to increase fiber capacity quickly, fueled by the rise of AI.

Cramer also highlighted recent earnings reports from AI hyperscalers showing that no one plans to cut spending on AI development.

“Is AI really meaningless?” Cramer mused.

The “Mad Money” host applauded Palantir’s conference call with analysts and investors, noting that Karp always delivers a “great” call that tends to be “exciting.” Cramer also said he “kind of loves” the Palantir CEO and highlighted some of Karp’s remarks that stood out.

“We founded this company to be a ray of light to America and our Western allies,” Cramer recalled Karp saying on the call.

“We are going to play a determinant role in making America and its Western allies the dominant force again in this world. And because of that, the best times for this company are not in the past.”

Don’t Miss: Jim Cramer Admits Palantir CEO Alex Karp’s ‘Insanity Is Growing On Me’ After Q4 Earnings Call: ‘Narrative Is Compelling’

PLTR Price Action: Palantir shares were up 13.1% at $27.25 at the time of publication, according to Benzinga Pro.

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