Wedbush analyst Dan Ives has repeatedly said that we are still early into the AI boom — especially when asked about whether AI is a bubble. That extreme positioning perfectly encapsulates the sentiment in the market these days. Market commentary often calls out the AI trade as risky and possibly in bubble territory, but Ives has been bullish on AI since the beginning.
Recently, Ives was asked about his favorite stock outside of the “Magnificent Seven,” and his answer was a company that he’s been talking about a lot over the past few years: Palantir (PLTR). Palantir is positioned as the software layer of AI. As hyperscalers spend billions on AI infrastructure, Palantir can comfortably sit on top of that spending and capture the usage layer. Since AI infrastructure spending isn't showing any signs of slowing down, it can be reasonably concluded that Palantir’s bull thesis hasn’t fully played out.
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Palantir has also shown impressive growth, gaining exposure to both enterprise and government AI spending. Through its Artificial Intelligence Platform (AIP), it has been able to monetize AI better than many other companies out there. In fact, while others are drowning in AI spending, Palantir continues to be one of the few firms able to reliably measure the ROI on its own AI investments.
About Palantir Technologies Stock
Palantir Technologies is a software company that develops and deploys data integration and analytics platforms for government agencies, defense organizations, and enterprise clients. The company operates both across the United States and internationally, with notable products like Gotham, Foundry, Apollo, and AIP.
PLTR stock has had two incredible back-to-back years but is down more than 17% so far in 2026. This move is unsurprising considering how the focus has recently shifted back to hardware and energy stocks. While the software downturn hasn’t helped, PLTR stock’s valuation had become stretched anyway.
barchart.comWhat the recent poor stock performance now means is that PLTR stock isn’t valued as highly as it was previously. In fact, the stock is trading below its five-year average on various metrics, although its multiples are still quite high. For example, the forward price-to-earnings (P/E) ratio is 132 times. Wall Street also continues to revise the company’s next three-year earnings forecast upward, which makes the valuation even more attractive.
Palantir Technologies Posts 70% Revenue Growth
Palantir posted its fourth-quarter fiscal 2025 results on Feb. 2. Revenue for the quarter came in at $1.41 billion, rising 70% year-over-year (YOY) and 19% quarter-over-quarter. U.S. revenue during the period reached $1.08 billion, reflecting 93% YOY growth and a 22% sequential increase. For the full year, revenue reached $4.475 billion, up 56% YOY.
On the earnings front, GAAP EPS was $0.24 for the quarter. Full-year GAAP EPS totaled $0.63.
Palantir forecast Q1 fiscal 2026 revenue to range from $1.532 billion to $1.536 billion. Adjusted income from operations is projected to be between $870 million and $874 million. For the full year, revenue is expected in the range between $7.182 billion and $7.198 billion, including U.S. commercial revenue of more than $3.144 billion. Palantir will report its Q1 2026 earnings on May 4.
What Do Analysts Say About PLTR Stock?
On April 24, Rosenblatt Securities analyst John McPeake reaffirmed a “Buy” rating on PLTR stock along with a price target of $200. Meanwhile, Mizuho recently cut its price target on Palantir Technologies from $195 to $185 while keeping an “Outperform” rating. These ratings suggest that analysts have mixed views on shares of the company.
Based on 28 Wall Street analysts with coverage, PLTR stock carries a consensus “Moderate Buy” rating. The mean price target of $195.04 reflects 32% potential upside from current levels.
barchart.com On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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