Palantir's AI Ambitions Drive Stock Surge Amid Analyst Optimism and Market Challenges

Wedbush's Dan Ives raises Palantir target, sees it as top software stock to play AI revolution

Wedbush's widely followed analyst Dan Ives raised his outlook for Palantir , seeing the software maker as an essential winner in the artificial intelligence boom. "We believe Palantir has a 'golden path to become the next Oracle' over the coming years and while the valuation is expensive today we see the Messi of AI as a core winner in the trillions of AI spend over the next few years," Ives said in a note to clients. The tech analyst hiked his 12-month price target to $160 from $140 after recent checks strengthened his confidence in the firm. Palantir's shares have skyrocketed nearly 90% this year alone to about $143 apiece. Ives' new target represents a 12% upside. PLTR YTD mountain Palantir year to date Palantir, founded in 2003 by a group that included Peter Thiel, the company's chairman, and CEO Alex Karp, has benefitted from a booming government business , which includes a $178 million contract to build artificial intelligence-enabled systems for the U.S. Army . "PLTR continues to see unprecedented demand for AIP based on our recent checks in the field across both commercial and government landscapes by taking AI solutions that solve meaningful problems across organizations at enterprise scale driving new customer conversions and existing deal expansions," Ives said.

Palantir Could Be The Next Big AI Winner, Says Dan Ives -- Sees 12% PLTR Stock Surge - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Palantir Technologies (NASDAQ:PLTR)

Tech bull Dan Ives of Wedbush Securities has raised his price target for Palantir Technologies Inc. PLTR, signaling a 12% upside from its current trading price over the next 12 months. What Happened: In a post on X, Ives expressed growing confidence in Palantir's artificial intelligence strategy and raised his target price on the stock to $160 per share, describing it as the company's "golden path to become an AI stalwart" over the next 12 months. The bullish outlook comes as Palantir continues to leverage its AI Platform (AIP) to integrate data, decisions, and operations for clients, driving a 45% year-over-year increase in U.S. commercial revenue to $373 million in the first quarter of 2025. - Ives' enthusiasm underscores his belief in the company's potential to dominate the AI landscape, despite its forward P/E ratio of 256.410, raising valuation concerns among some investors. Recently, Palantir partnered with BlueForge Alliance to digitize and accelerate U.S. warship production for the Navy. The company is also negotiating to provide technology to the IRS and Social Security Administration, strengthening its government footprint. Since Donald Trump's inauguration, Palantir has secured over $113 million in contracts, excluding a $795 million DoD deal. However, controversy looms as states allege the Trump administration illegally shared Medicaid recipients' health data with immigration authorities, violating federal privacy laws. See Also: Warren Buffett's Quiet Dividend Play: 9 High-Yield Stocks Held By A Berkshire Subsidiary Why It Matters: Ives has been bullish on the stock, betting that it could triple in the coming years and trade above $400 per share. "That's why it's the 'Messi of AI.' I believe we're talking about a trillion-dollar market cap for Palantir in the next few years, and I think when you look at what [Alex] Karp and Palantir are doing, they, along with Nvidia, will be leading the AI revolution," Ives said in May. Price Action: The stock was 0.25% in premarket on Thursday, but it has risen 90.36% on a year-to-date basis and 403.62% over the last year. Twenty-five analysts, tracked by Benzinga, have set a consensus price target of $76.72 for Palantir with a consensus 'sell' rating. The latest analyst ratings suggest a potential downside of 9.83% for the stock. Benzinga Edge Stock Rankings shows that PLTR had a stronger price trend over the short, medium, and long term. Its momentum ranking was solid at the 98.99th percentile, whereas its value ranking was poor at the 2.67th percentile; the details of all the metrics are available here. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, were slightly lower in premarket on Thursday. The SPY was down 0.095% at $623.47, while the QQQ declined 0.049% to $555.98, according to Benzinga Pro data. Read Next: As Trump Calls For 3-Percentage Point Rate Cut, 'Too Late' Jerome Powell To Resign, June Fed Minutes Show 'Uncertainty' Reigns Supreme Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock PLTRPalantir Technologies Inc$142.98-0.10%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum98.99Growth97.37QualityN/AValue2.67Price TrendShortMediumLongOverviewQQQInvesco QQQ Trust, Series 1$556.06-0.03%SPYSPDR S&P 500$623.51-0.09%Market News and Data brought to you by Benzinga APIs

Palantir Stock Is Gaining Again On Monday: What's Going On? - Palantir Technologies (NASDAQ:PLTR)

Shares of Palantir Technologies Inc PLTR are trading higher Monday, continuing a recent surge despite a lack of company-specific news for the session. The data analytics firm has seen its stock gain momentum following a series of positive developments and a bullish analyst outlook from last week. Here's what investors need to know. What To Know: Last week, Wedbush analyst Daniel Ives reiterated his Outperform rating on Palantir, raising his price target to a Street-high of $160. Ives cited the company's strong position to secure significant government contracts, particularly in the AI space, highlighting the potential for growth under the current administration's initiatives. A recent NATO contract further solidifies Palantir's expanding footprint in the international defense sector. The company's Artificial Intelligence Platform is seen as a major growth driver, with its U.S. commercial revenue jumping 71% year-over-year in the first quarter. Palantir is also expanding its strategic partnerships, recently announcing a collaboration with weather intelligence firm Tomorrow.io to integrate real-time atmospheric data into its platforms. This string of positive news over the trailing week continues to fuel investor confidence in Palantor's long-term growth trajectory in both government and commercial markets, pushing the stock upward even on a slow news day for the company. Analyst Ratings: Recent analyst updates on Palantir show a trend of increasing price targets, even as overall ratings remain mixed. On June 12, Loop Capital reiterated its "Buy" rating, boosting its price target significantly from $130 to $155. The day prior, Mizuho, while maintaining its "Underperform" rating, also raised its price target from $94 to $116. This follows a series of upward revisions in May from firms like Citigroup, which maintained a "Neutral" rating but lifted its target to $115. The consistent price target hikes across the board, from bullish to bearish analysts, suggest a broad reassessment of the company's valuation in light of its recent performance and future prospects. Price Action: According to data from Benzinga Pro, PLTR shares are trading higher by 3.46% to $147.03 Monday afternoon. The stock has a 52-week high of $148.22 and a 52-week low of $21.23. Read Also: Grok 4, Palantir's AI Ambitions, Openai's Big Moves, And Google's $2.4 Billion Windsurf Deal: This Week In AI Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedHow To Buy PLTR Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in Palantir Technologies' case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Image: Shutterstock PLTRPalantir Technologies Inc$146.903.38%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum98.91Growth97.34QualityN/AValue2.56Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

"Palantir Stock Hits New High -- What's Driving the Surge?" - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc PLTR shares closed Monday at their highest levels ever and have now nearly doubled since the start of the year. Here's a look at what's been fueling the momentum in the AI software company's stock. AI Momentum: Palantir shares have risen more than 97% year-to-date on the back of AI-related tailwinds. The company continues to see strong demand for its Artificial Intelligence Platform, which has helped it become one of the best-performing names in the S&P 500 in recent years. In the words of co-founder and CEO Alex Karp, Palantir is "delivering the operating system for the modern enterprise in the era of AI." Karp said last quarter that the company was in the middle of a "tectonic shift" in the adoption of its software. Palantir beat analyst estimates on the top and bottom lines when it reported first-quarter results in May. U.S. Commercial revenue increased 71% year-over-year and U.S. Government revenue climbed 45%. Palantir's customer count also grew 39% year-over-year and 8% on a quarter-over-quarter basis, which included 139 deals worth over $1 million during the first quarter and 51 deals worth at least $5 million. After the market closed on Monday, Palantir scheduled its second-quarter earnings for after the market close on Aug. 4. Analysts currently expect the company to report earnings of 14 cents per share and revenue of $939.71 million, according to estimates from Benzinga Pro. Analysts are divided on where Palantir shares are headed. Some analysts maintained Neutral or Underperform ratings following the company's first-quarter results, with price targets as low as $90. Others see more room to run with Loop Capital increasing its price target to $155 last month and Wedbush raising its target to a Street-high $160 last week. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started Wedbush's Dan Ives sees a "golden path" forward for Palantir and expects the company to be a "core winner" of the trillions of AI spend anticipated over the next few years. At the end of May, Ives predicted that Palantir could reach a $1 trillion market cap valuation, or approximately $427 per share, over the next two to three years. "You cannot talk AI revolution without saying Palantir," Ives said at the time. PLTR Price Action: Palantir shares hit a new all-time high of $149.57 in Monday's session before closing the day up 4.96% at $149.15, per Benzinga Pro. Palantir stock is now up approximately 61% over the past three months. The stock has a high momentum score of 98.91, according to Benzinga data. Read Next: Dan Ives Bets On Cybersecurity As 'Biggest Subsector' In Tech For 2025; Expects Strong Q2 Earnings From CrowdStrike, Zscaler, Palo Alto, Check Point Photo: Sundry Photography/Shutterstock.com PLTRPalantir Technologies Inc$148.704.64%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum98.91Growth97.34QualityN/AValue2.56Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Thinking of Buying Palantir Stock? Here Are 2 Red Flags to Watch. | The Motley Fool

Palantir Technologies (PLTR 1.62%) is one of the most talked-about artificial intelligence (AI) stocks on the market. Its software plays a central role in helping governments and enterprises turn complex data into actionable insights -- and more recently, it doubled down on its AI strategy with the launch of its Artificial Intelligence Platform (AIP). With a strong brand and a mover advantage, the company seems positioned to benefit from the broader AI wave. However, beneath the compelling narrative, investors should keep a close eye on the fundamentals, as a few red flags could limit Palantir's upside if not addressed over time. Palantir's roots lie in government work -- and that legacy continues to define much of its business today. As of Dec. 31, 2024, 55 % of the total revenue was derived from government contracts, primarily with the U.S. Department of Defense and the intelligence community. These are large, sticky, and mission-critical deals -- but they also come with risks. For one, government spending is inherently cyclical and subject to the shifting winds of politics. A change in priorities or budget constraints could delay contract renewals or result in reduced spending. That's not a theoretical concern -- it has happened in the past and will likely continue in the future. Even more importantly, Palantir's total addressable market (TAM) serving the public sector is largely capped. Particularly, only a narrow group of allied nations, primarily in North America and Europe, can realistically use its software in the national security context. That places a natural ceiling on the company's government revenue growth runway. Add to that customer concentration, and the picture gets even more constrained. In 2024, the average revenue for the top 20 customers in Palantir was $64.6 million, totaling $1.3 billion, or 45% of its 2024 revenue of $2.9 billion. With such a high level of dependence on a few large customers, losing one or two of these key clients could have a material impact on growth and profitability. Palantir is trying to change this with its concerted effort to scale its commercial business. For instance, in the first quarter of 2025, U.S. commercial business grew 71% year over year, outpacing the U.S. government's revenue growth of 45%. The rapid adoption of AI and the launch of AIP could help the company grow its commercial adoption and reduce overall revenue concentration over time. However, until this shift is fully realized, revenue concentration remains one of the biggest risks for long-term investors. Palantir's AIP platform is a significant part of why investor interest has soared. The idea is compelling: Allow companies to deploy intelligent agents trained on their proprietary data in a secure, controlled environment. It's a differentiated pitch, and one that aligns well with how enterprises are likely to adopt AI. So far, early indicators confirm that the tech company is on the right path. It grew its customer count by 43% to 711. It also increased the total commercial remaining deal value, which represents deals signed but not yet converted into revenue, by 47% to $3.1 billion, thanks to a record-setting $803 million deal closed in the U.S. commercial contract market in the fourth quarter of 2024. But here's the catch: While there are good reasons to be optimistic that this growth trajectory could continue, the reality is that groupwide revenue grew by "just" 29% in 2024. Stock price, however, jumped 410% (as of writing) in the last 12 months. In terms of valuation metrics, Palantir trades at a staggering 112 times price-to-sales (P/S) ratio, which implies that investors already factored in massive future success into today's stock price. It's not unusual for high-growth software companies to trade at lofty multiples early in their maturity curve. But in Palantir's case, the gap between valuation and current revenue scale raises questions. That could make the stock vulnerable if the AI opportunity comes out short, or if enterprise AI adoption is slower than expected. The silver lining is that there is a timing difference between deals signed and revenue inflow, so investors can expect a massive ramp-up of revenue in the coming quarters. Still, execution needs to be nearly flawless to support the current valuation level, let alone increase it further. There's a lot to like about Palantir. It's building real solutions, working with mission-critical customers, and creating a foothold in enterprise AI. But long-term investing requires more than just buying into a great story. It's about assessing whether the fundamentals can support the valuation being paid today. Right now, Palantir still has work to do. Revenue remains concentrated, and commercial traction -- while improving -- hasn't yet reached escape velocity. Combine that with a valuation that assumes breakout success, and Palantir's stock remains a high-risk bet.

Palantir Stock: Buy at the High? | The Motley Fool

Palantir Technologies (PLTR 1.62%) last year delivered the best performance in the S&P 500 index, and the artificial intelligence (AI)-driven software company may be on track to repeat that. So far this year, the stock has posted the biggest gain in the benchmark, advancing nearly 100%. The reason behind all of this excitement is clear: Palantir has reported surging demand from commercial and government customers, and that's translated into an explosion in revenue growth. The company is benefiting from commercial and government interest in AI as one of its systems in particular -- known simply as the Artificial Intelligence Platform (AIP) -- helps customers immediately apply AI to their individual situations. Palantir's successes so far and the general forecast for an AI market valued at more than $2 trillion a few years down the road offer us reason to be optimistic about the company's growth. Still, some analysts aren't convinced the stock can keep up the current pace and expect it to fall -- possibly by about 30% according to the average Wall Street price forecast -- in the coming 12 months. So far, though, the stock has been going strong and even reached a new record high. Considering all of this, should you buy at the high or avoid this highflyer? Let's find out. First, let's talk a bit about Palantir's business. The 20-year-old company makes software that helps customers aggregate their data -- sometimes data that's otherwise inaccessible or unused -- and analyze it to make game-changing moves. In the company's early days, the U.S. government was its primary customer, and though government revenue continues to be a big part of the Palantir picture, it now is sharing space with a commercial audience. Commercial customers, eager to apply AI to their businesses, have rushed to Palantir's AIP in particular, and that's helped commercial revenue climb in the double digits quarter after quarter. Deal size and the number of commercial customers both are on the rise too, showing general momentum across this business. For example, in the recent quarter, U.S. commercial remaining deal value climbed in the triple-digits to more than $2 billion. And the company now has hundreds of commercial customers, up from just 14 four years ago. The government business also may be a big growth driver in the future as the U.S. government puts a focus on efficiency. Palantir recently announced Warp Speed for Warships, a new program to modernize shipbuilding for the Navy. The company's technology -- involving a secure platform loaded with data, models, and tools for decision-making -- will be used to digitally connect shipbuilders, suppliers, and other key partners. All of this has equaled growing revenue for Palantir, but importantly, the company has managed to also ensure profitability -- its Rule of 40 score of 83% illustrates this. For software companies, a score of 40% means a company has balanced growth and profitability, so well above this level, Palantir is winning big in this area. This complete picture has made Palantir a very attractive stock, prompting investors to pile in -- and sending valuation soaring. Today, the stock trades for an eye-popping 256 times forward earnings estimates. As mentioned, some analysts predict declines from this level in the coming months. Now let's return to our question. Considering the complete picture, is Palantir a buy now after reaching its latest record high, or is it just too expensive? There's no denying that Palantir's valuation looks steep right now, but it's important to keep in mind that these metrics take into account earnings over the coming year or in the recent past -- they don't incorporate potential over the coming five to 10 years, for example. So, when looking at a very innovative tech stock, it's sometimes difficult to rely on valuation metrics. In some cases, when a player looks very strong -- such as in the case of Palantir -- and you're aiming to hold on for the long term, it's worth buying. It's possible -- and even likely -- this high-flying stock may take a pause or decline at some point, but Palantir has what it takes to advance significantly over the long term. And that means investors who buy the shares today at the current high still may have a lot to gain a few years down the road.

Why Palantir Stock Skyrocketed 80.3% in the First Half of 2025 -- and Has Kept Rising | The Motley Fool

Palantir's valuation has surged in 2025 thanks to strong business results and excitement surrounding the company's long-term opportunities in the artificial intelligence (AI) software space. The stock is now up roughly 1,570% over the last three years. In February, Palantir published results for last year's fourth quarter -- and the print came in far better than Wall Street's already elevated expectations. The business posted non-GAAP (adjusted) earnings per share of $0.14 on revenue of $828 million, crushing the average analyst estimate's call for per-share earnings of $0.11 on sales of $776 million. Sales were up 36% year over year in the period, and the results showed that the company was continuing to score big wins with customers in the public sector and the private sector. Palantir then published results for this year's Q1 in May, delivering adjusted earnings that were in line with Wall Street's target and sales that topped the market's expectations. The business posted adjusted earnings of $0.13 per share on sales of $884 million. Meanwhile the average analyst estimate had called for per-share earnings of $0.13 on sales of $863 million. Palantir stock actually saw a sell-off in the trading immediately following its Q1 report, but the results were strong enough to lay the foundations for the rally to resume after some initial volatility. Palantir stock posted impressive gains across the first half of 2025's trading. The company's valuation appears to have gotten a boost from excitement surrounding AI companies with exposure to the defense industry and expectations that the Trump administration will help establish favorable conditions for its growth. The rally for Palantir stock has continued in the second half of 2025, and the company's share price is now up roughly 11% across July's trading. Management is guiding for annual revenue to come in between $3.89 billion and $3.902 billion this year -- good for growth of roughly 36% at the midpoint of the target range. Meanwhile, the company's midpoint target calls for adjusted free cash flow of roughly $1.7 billion. On the heels of explosive gains, Palantir is now trading at roughly 259 times this year's expected earnings and 91 times expected sales. While Palantir's incredibly growth-dependent valuation creates the potential for substantial downside volatility, the business has been serving up strong results -- and investors are betting that the company will continue to score big wins in the AI software space.