According to 4.5-star Wedbush Securities analyst Dan Ives, the broader software industry is now set to benefit from the exploding use cases of AI. Indeed, Ives believes that “the AI Software era is now here” due to the launch of large language models and the increasing use of AI by enterprises. More specifically, Ives pointed to Palantir (PLTR) and Salesforce (CRM) as the top two software plays for the AI revolution but also mentioned other beneficiaries like Oracle (ORCL), IBM (IBM), and Snowflake (SNOW).
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Interestingly, despite Palantir’s recent valuation jump, Ives believes that Wall Street is still underestimating the impact of AI on the software industry. In fact, he expects a significant increase in AI-related spending, with a potential $2 trillion in capital expenditures over the next three years. As a result, Wedbush has a Buy rating on PLTR stock with a $120 per share price target.
As more enterprises and governments adopt AI, Ives believes that the tech industry will experience a generational shift. While there may be concerns and uncertainties surrounding the AI buildout, Ives is optimistic about the prospects for the tech sector. He also notes that the recent tech earnings season has provided clarity on the AI landscape, and he expects the trend to continue in the coming year.
What Is the Prediction for PLTR Stock?
Turning to Wall Street, analysts have a Hold consensus rating on PLTR stock based on two Buys, 10 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After a 359% rally in its share price over the past year, the average PLTR price target of $88,60 per share implies 22.7% downside risk.
