Palantir (NYSE:PLTR) shares are up by 140% year-to-date, with the gains a reflection of the big data specialist’s opportunity in AI – the year’s biggest buzzword.
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According to the noises made by the company following the release of its Q2 results, it’s an opportunity that is about to play out in a big way.
Palantir’s Artificial Intelligence Platform (AIP) was only launched around 10 weeks ago but appears to already be gaining traction. In fact, in his letter to shareholders, CEO Alex Karp said demand for the AIP platform “is unlike anything we have seen in the past twenty years.”
The company is actively working with over 300 businesses to implement AIP. These businesses are all in pursuit of an effective and safe way to integrate the newest LLMs into their internal systems and proprietary data.
And due to the growing demand, the company increased its FY23 revenue guidance to more than $2.212 billion compared to the previous $2.185 billion – $2.235 billion range. Consensus had that figure at $2.212 billion. For Q3, Palantir guided above the Street as well, calling for revenue between $553 million – $557 million vs. the analysts’ expectation of $553.1 million.
The company also raised its operating income outlook for the year, now expecting it to be above $576 million, compared to between $506 million – $556 million beforehand.
In further pleasing news for investors, a $1 billion buyback plan was also announce.
Amid these promising developments, Wedbush analyst Daniel Ives is fully on board, praising Palantir as the ‘Messi of AI.’
“With a raise in FY23 guidance, significant increase in customer count, strong performance, and the AI arms race well underway, we continue to believe Palantir is the gold standard in AI and are confident in the company’s efforts to expand into the commercial space while maintaining its massive government presence,” said the 5-star analyst.
Accordingly, Ives maintained an Outperform (i.e., Buy) rating on PLTR shares along with a Street-high $25 price target. The implication for investors? Upside of 62% from current levels. (To watch Ives’ track record, click here)
Ives’ has a rather more bullish take than that of most of his colleagues. Elsewhere, the stock claims an additional 2 Buys, 6 Holds and 3 Sells, all culminating in a Hold consensus rating. At $15.14, the analysts expect shares to be changing hands for a 16% discount a year from now. (See Palantir stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
