Palantir Technologies shares rocketed higher Tuesday after earnings results comfortably beat expectations. Many analysts are wary the analytics software provider is overvalued.

Shares of data-mining and analytics company Palantir (NYSE:PLTR) jumped 22.9% in the morning session after the company reported a "beat and raise" quarter. Third-quarter results blew past analysts' revenue and EBITDA expectations.

Given the dramatic rise of artificial intelligence, it’s no shock to see big data analytics firm Palantir Technologies (PLTR) swing higher. At

Palantir Technologies has been a beneficiary of the AI trend, and that has been reflected in its soaring stock price. The company's financial results surpassed the market's lofty expectations. Some investors will shy away from the stock due to its frothy valuation.