Palantir's AI Strategy Drives Wedbush to Raise Price Target to $90, Citing Potential Market Dominance

Palantir stock target raised at Wedbush, new Street high By Investing.com

Investing.com -- Wedbush Securities raised its price target for Palantir Technologies (NASDAQ:PLTR) to $90 per share in a note Thursday, representing a new Street high. The firm maintained an Outperform rating on the stock. "We are raising our price target on Palantir from $75 to $90 as our recent checks and growing confidence in the company's AI strategy is key to the bull thesis on Palantir for 2025," the firm stated. Wedbush believes Palantir has the potential to become a dominant force in the AI market, akin to industry giants like Oracle (NYSE:ORCL) and Salesforce (NYSE:CRM). "We believe Palantir has a path to become the next Oracle or Salesforce over the coming years," the note reads. "We see the Messi of AI as a core winner in the trillions of AI spend over the next few years." The firm highlighted the growing traction of Palantir's Artificial Intelligence Platform (AIP), particularly within both the commercial and government sectors. Wedbush said they believe boot camp deal conversions will be the key theme for Palantir into the next few quarters, with "the Street still underestimating core AIP growth in our view." "We are hearing from customers that bootcamps are providing unmatched value and AI insight leading to very quick sales cycles and shortening conversion timelines to deploy products, optimize workflows, and form use cases," wrote Wedbush. "AIP Generating More Traction with Improved AI Stack. PLTR continues to see unprecedented demand for AIP based on our recent checks across both commercial and government landscapes," the firm added. The firm also emphasized the potential tailwinds for Palantir from the current administration. They believe the Trump Administration represents an additional tailwind for PLTR, noting AI initiatives within the US government, including the DoD accelerating as AI remains a strategic focus on the federal front. The firm acknowledged a one-time impact of $120 million in stock-based compensation expense in the fourth quarter but emphasized that this will have no impact on pro forma earnings or cash flows.

PLTR Stock Is Up 166% In Last 6 Months. Now Dan Ives Sees Room For 17% More Growth: 'Our Recent Checks And Growing Confidence...Is Key To The Bull Thesis' - Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA)

Amid growing AI adoption support from the Trump administration, Wedbush Securities elevated its price target for Palantir Technologies Inc PLTR, highlighting the company's strategic approach to artificial intelligence. The Wedbush Securities Analyst: Dan Ives maintained his 'outperform' rating on Palantir Technologies Inc PLTR and raised its target price to $90 from $75 apiece, representing a 17% increase from its current price level of $76.87, as of Wednesday's close. The recent highest price target for Palantir was $80 apiece, issued by UBS on Dec. 19. The new target price of $90 by Wedbush, makes it the highest price target among the analysts tracked by Benzinga. The Analyst Takeaways: According to an X post by Ives, their recent "checks" and "growing confidence" in PLTR's strategies have led to this price hike. See Also: Palantir Nearly 3X More Expensive Than Industry Average: PLTR Stock Zooms Over 395% Amid Overbought Conditions A strong Palantir bull, Ives had last raised the company's target price to $75 on Nov. 25. In the past, he has lauded Palantir as "the Messi of AI," emphasizing its leading role in the AI revolution. Ives highlights the expanding use cases for Palantir's products, a growing partner ecosystem, and rising demand for its enterprise AI solutions. Why Does It Matter: Stargate has committed an initial $100 billion, with a bold long-term goal of investing up to $500 billion, to construct data centers and essential infrastructure that will power the advancement of AI. This ambitious project, currently underway in Texas, is expected to generate 100,000 jobs and solidify the United States' position at the forefront of AI innovation. While Nvidia Corporation NVDA, Microsoft Corporation MSFT and Oracle Corporation ORCL are direct beneficiaries of the package, the announcement has boosted all AI-linked stocks. See Also: Warren Buffett Openly Called Bitcoin A 'Rat Poison' In 2018. 7 Years Later, He Is Invested In This Crypto-Linked Stock Which Soared 27% In 2024 Price Action: Palantir, the top performer of 2024 on the S&P 500, was down 1.48% in the premarket trade. It fell 4.73% over the last month but it was up 166.82% over the last six months. Palantir has a consensus 'sell' with a price target of $38.63, according to the 22 analysts tracked by Benzinga. Recent ratings by Cantor Fitzgerald, Morgan Stanley, and UBS suggest a $70.67 target, implying a 6.53% downside. Read Next: Tesla Set For A 'Choppy' First Half Amid New EV Policies, But This Analyst Sees 20% Upside For Elon Musk's EV Company With A $500 Price Target Image via Shutterstock MSFTMicrosoft Corp$443.00-0.72%Overview Rating:Good62.5%Technicals Analysis1000100Financials Analysis400100WatchlistOverviewNVDANVIDIA Corp$144.40-1.82%ORCLOracle Corp$180.40-2.07%PLTRPalantir Technologies Inc$75.60-1.65%Market News and Data brought to you by Benzinga APIs