Palantir (NASDAQ:PLTR) stock has been one of the biggest beneficiaries of the ongoing AI boom. Yet, its huge 360% gains over the past 12 months have led many to question whether the stock’s valuation now places it firmly in “no-go” territory for investors.
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Wedbush analyst Daniel Ives, however, doesn’t share these concerns. While many have been raising the alarm on what can be considered a very frothy valuation, Ives thinks the opportunity ahead is just too big to ignore.
“We believe Palantir has a path to become the next Oracle or Salesforce 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. “Palantir remains one of our top names to own in 2025 as its game-changing AIP strategy is quickly becoming a key foundational platform for enterprises heading down the AI use case path across verticals.”
According to Ives, both new and current customers from the commercial and federal sectors are eager to adopt “multiple aspects” of Palantir’s technology stack, as the company continues to roll out new use cases. Organizations are increasingly turning to AI-driven solutions to enhance efficiency, with Palantir “leading the charge.”
And yet, the Street has yet to realize what’s truly going on here, as it is “underestimating the $1 billion+ revenue stream that PLTR’s AIP US commercial business can evolve into over the next few years.”
That misconception might not last for long, however. Over the coming quarters, boot camp deal conversions should be a key theme with Ives noting that feedback from customers shows that the boot camps deliver “unmatched value and AI insight,” resulting in accelerated sales cycles and significantly shorter conversion timelines.
Additionally, with a strengthened product portfolio featuring advanced AI capabilities designed to be deployed safely, securely, and responsibly by the U.S. government, Palantir is also gaining significant momentum within the federal sector, expanding its reach across multiple agencies.
Adding to its momentum, Ives points to a potential tailwind from the current administration. AI investments under Trump are likely to benefit Palantir in the government sector as attention shifts toward the strategic development of AI infrastructure. “In essence,” Ives summed up, “Palantir is in the sweet spot to benefit from a tidal wave of federal spending on AI.”
Doubling down on his optimism, Ives rates Palantir shares as an Outperform (i.e., Buy) with a Street-high price target of $90. The implication for investors? Potential upside of 19% from current levels. (To watch Ives’ track record, click here)
Ives is a big PLTR fan but only one other analyst takes a bullish stance with the 16 remaining analyst reviews splitting into 9 Holds and 7 Sells, all resulting in a Moderate Sell consensus rating. The average price target is a pessimistic one; at $49.27, the figure factors in a one-year slide of ~35%. (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
