Palantir Technologies Inc. is gaining significant attention in the artificial intelligence landscape, as Wedbush Securities analyst Dan Ives projects the firm could become "the next Oracle" amidst the ongoing AI revolution. Ives described Palantir as “the Messi of AI,” underscoring the company’s dominance in the sector and its impressive stock performance in 2024, which has surged by 395.42%.
Currently, shares of Palantir are trading at approximately $82.14, making it the top performer in the S&P 500 with a market capitalisation reaching $183.23 billion. This meteoric rise positions the company well above Wedbush's price target of $75; however, Ives remains optimistic about its growth prospects. "Looking ahead to the next 5-10 years, I believe it’s all about Palantir. In the context of the AI revolution, this is just the beginning," he stated during a feature on CNBC’s Closing Bell Overtime, recommending the stock as a valuable addition to investors' portfolios, despite its high price-to-earnings ratio of 411.90.
Alex Fishman, a former employee of Palantir and now part of Empros Capital, echoed Ives' enthusiasm, suggesting the company could experience phenomenal growth. “When I look at Palantir, it’s one of the few companies where I can easily envision it becoming 10 or 20 times its current size,” Fishman remarked, highlighting Palantir’s pivotal role across defence and commercial sectors. He described the firm as “the glue that ties everything together” in facilitating essential technological initiatives.
On Wall Street, opinions on Palantir's valuation vary, with a more cautious consensus emerging. Analysts maintain an average price target of $35.58 based on 20 different ratings, although there are signs of increasing optimism. Notably, UBS set a price target of $80 on December 19, with firms such as Mizuho and Baird also projecting positive outcomes, even as their average target lingers at $64.67, indicating a potential decline from current levels.
Further technical analysis reveals that Palantir’s stock still possesses growth potential, as indicated by a Relative Strength Index (RSI) reading of 62, suggesting that it has not yet reached overbought conditions despite its remarkable ascent. The stock’s 52-week range, from $15.66 to $84.80, reflects a volatile yet consistently upward trend.
In the same context, Ives also adjusted his price target for Apple Inc., raising it to $325 due to developments in AI; however, he emphasised Palantir’s distinct advantage within the enterprise AI sector. As more companies integrate AI technologies into their operations, Ives views Palantir’s established presence in commercial expansion and the defence industry as pivotal for its sustained growth into 2025 and beyond.
Source: Noah Wire Services