(Reuters) - Palantir shares jumped over 12% on Tuesday after the data analytics firm raised its annual revenue forecast for the third time, bolstering investor confidence that the artificial intelligence boom was fueling demand for its services.

The company is among the biggest stock market winners of the generative AI boom, with its shares more than doubling in value this year — a rally that has sparked concerns over its steep valuation.

But Palantir's results late on Monday allayed some of those fears as demand rose thanks to its AI platform, which is used to test, debug code and evaluate AI-related scenarios, as well as its government-oriented services that include software to visualize army positions.