(Bloomberg) -- Palantir Technologies Inc. raised its forecast for adjusted profit in 2023 and authorized a $1 billion share buyback on the strength of what it called “transformative” traction for its artificial intelligence technology.

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“We have a good chance at becoming the most important software company in the world,” Chief Executive Officer Alex Karp told Bloomberg during an interview Monday. “Demand is unprecedented” for Palantir’s AI, he said.

After initially falling as much as 12% in extended trading after the report, the shares bounced back, rising about 3% as of 5:30 p.m. in New York. Over the last quarter, excitement around AI helped drive a 132% increase in the company’s share price, which closed Monday at $17.99.

The Denver-based software company said it expects to bring in $2.21 billion in revenue during 2023. That forecast was at the low end of analysts’ projected estimates for sales of $2.19 billion to $2.24 billion for the year.

Its expectations for profits were sunnier, with a forecast of $576 million in adjusted income from operations, exceeding Wall Street expectations of $530.3 million, according to estimates complied by Bloomberg.

Palantir has been selling predictive data analysis software to US government agencies and major companies for nearly two decades. Long a player in AI, Palantir began touting those capabilities more aggressively earlier this year, as the fervor climbed over the technology and its capabilities.

The company recently launched its Artificial Intelligence Platform, or AIP, to help companies and governments use AI to analyze data and make decisions, including in battlefield contexts. The product launched with no pricing strategy and the audacious goal, described by Karp, to “just take the whole market.”