Palantir Technologies Inc. (NASDAQ:PLTR) is gaining momentum as a key player in the global AI space due to strong government-backed initiatives like Project Stargate under the Trump administration.
A recent NATO contract further underscores Palantir's growing influence in international defense and intelligence sectors.
The company is also well-positioned to expand in regions like the Middle East, where disciplined budgeting and rising AI adoption present new growth opportunities.
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Analyst Opinion
Wedbush analyst Daniel Ives reiterated an Outperform rating on Palantir Technologies, raising the price forecast from $140 to $160.
The analyst highlights that the current Trump administration is likely to act as a tailwind for Palantir, especially as AI initiatives within the U.S. government, including those led by the Department of Defense, continue to gain momentum.
Increased federal focus on AI, exemplified by efforts like Project Stargate, is expected to support Palantir's expansion within the public sector as Washington intensifies its push to build out national AI infrastructure.
Additionally, Ives sees Palantir's recent NATO contract win as a further signal of growing opportunity, with AI adoption accelerating across both U.S. and European government agencies.
He also points to the company's alignment with a more disciplined global budget environment, suggesting this shift will help drive Palantir's growth trajectory as it continues to gain influence—particularly in regions like the Middle East, where AI priorities are quickly moving to the forefront.
Ives raises his price forecast, citing increased confidence in the company's AI-driven strategy as a key catalyst for growth over the next 12 to 18 months.
He views Palantir as having a clear trajectory to become a major enterprise software player- comparing its potential to Oracle Corporation's (NYSE:ORCL)-and while the stock's current valuation appears elevated, he assumes Palantir is well-positioned to be a dominant force in the massive AI spend expected in the coming years.
Ives continues to name Palantir as a top pick within his "IVES AI 30" list, emphasizing the growing impact of its Artificial Intelligence Platform (AIP), which is becoming essential for enterprises exploring AI adoption across industries.
The analyst points out that both new and existing customers in commercial and federal markets are increasingly adopting various parts of Palantir's technology suite, particularly as the company rolls out new, valuable AI use cases to drive operational efficiencies.
He highlights that Palantir's AIP U.S. commercial business could generate more than $1 billion in annual revenue in the future, noting that the broader market may be underestimating this opportunity and the long-term competitive edge Palantir has built under CEO Alex Karp's leadership.
According to Ives, recent feedback from customers points to Palantir's bootcamps offering significant value, helping organizations identify and implement AI solutions rapidly.
These bootcamps are reportedly shortening sales cycles and accelerating product deployment and workflow optimization.
Palantir is experiencing strong demand for AIP across both commercial and government sectors, driven by its ability to address real-world enterprise challenges with scalable AI tools.
Price Action: PLTR shares are trading lower by 0.56% to $142.36 at last check Thursday.
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