Palantir's stock is rallying after another excellent quarter. The company's sales hit $1 billion in the second quarter and profits more than doubled. Its valuation has eclipsed that of many blue-chip stocks.

The stock has climbed 2.5x since early January and now trades at around $185 per share. After such a rapid ascent, should investors holding sizable gains cash out?

Palantir (NASDAQ:PLTR) stock has continued to defy the laws of gravity through the summer, gaining another 60% in the past three months, putting Alex Karp’s AI analytics firm up north of 520% in the past year.