Palantir (NYSE:PLTR) is steadily expanding its footprint in the AI sector. Earlier this week, the big data specialist unveiled a new product called Live Edge, developed in partnership with Edgescale AI, a specialist in virtual cloud networks. The offering enhances physical AI capabilities, distinguishing it from the more prominent language AI that’s currently in the spotlight.
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The product is designed to implement AI in manufacturing, utilities, and other complex industrial sectors. Palantir says that Live Edge introduces a new method for deploying AI at the edge, empowering developers to explore additional possibilities. For example, it could be used to send instructions to robots.
Northland’s Michael Latimore, an analyst ranked in the top 3% of Wall Street stock pros, notes that for the first time in the industry, Live Edge “enables delivery of AI applied directly to systems of action at scale.”
That said, getting AI into the physical realm is no alien concept for Palantir. The 5-star analyst points out that plenty of the company’s most notable success stories involve customers with a vast network of connected devices. These clients, often from industrial sectors (focused on physical systems) and the military, tend to be “under-invested in digital technologies.” Implementing the Palantir operating system serves as a catalyst for their digital transformation.
One big consequence is that customers can harness data generated by end devices, like sensors on pipelines or drones. The Palantir platform enables them to utilize this data and integrate it with other IT systems, often legacy ones, to generate “real-time insights and decisions.”
Latimore thinks Live Edge should “further help Palantir win new logos among verticals with physical systems,” thereby setting the stage for numerous upselling opportunities after deployment.
Does this necessarily make PLTR shares a Buy? Not right now, appears to be Latimore’s conclusion. The analyst has a Market Perform (i.e., Neutral) rating for the stock while his $35 price target implies shares will shed 8.5% over the next year. (To watch Latimore’s track record, click here)
Latimore’s outlook is actually more optimistic than the broader Wall Street consensus, where the average price target sits at $27.67, implying a 28.5% drop over the next 12 months. With 6 Hold ratings, 6 Sells, and 4 Buys, the consensus view remains that Palantir is a Hold. (See Palantir 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.
