Despite its lofty valuation, Palantir Technologies (PLTR) still has significant upside potential as it continues to ride the wave of the enterprise AI boom.
That’s according to Wedbush analyst Dan Ives, who recently raised his price target on PLTR stock by 14% to $160 and upgraded his rating to “Outperform.”
Palantir shares closed at $142.10 on Friday, up 89% year-to-date and more than 400% over the past 12 months.
The rally has pushed the company’s market cap above $335 billion, though it also brings significant valuation concerns, particularly when measured by price-to-earnings and forward price-to-earnings ratios.
Nevertheless, Ives is optimistic about Palantir’s AI trajectory, calling it a “golden path to become the next Oracle.”
“Palantir remains one of our top names to own,” Ives said, “as its game-changing AIP strategy is quickly becoming a key foundational platform for enterprises heading down the AI use case path across verticals.”
Tom Hulick, CEO of Strategy Asset Managers, shares Ives’ bullish outlook, telling CNBC that Palantir is one of the top stocks for AI exposure.
Although Palantir is best known as a data analytics company, its AI strategy is often misunderstood because it doesn’t focus on off-the-shelf AI products.
Instead, Palantir’s approach centers on helping organizations securely deploy AI and large language models, with tailored, industry-specific solutions across sectors such as defense, healthcare, finance, and manufacturing.
This focus has not always been well-received by the public, with critics and civil liberties organizations accusing the company of enabling expanded government surveillance.
Palantir’s benefits still outweigh its risks, for now
Analysts warn that Palantir’s deep involvement in government surveillance and large-scale data aggregation could expose the company to ethical concerns, reputational risk, and potential regulatory scrutiny.
For now, however, those risks are largely overshadowed by the booming demand for AI solutions, particularly from government agencies and the private sector.
As Investors Observer reported, Palantir’s technology plays a central role in critical government operations, with contracts across the Pentagon, Department of Homeland Security, Department of Health and Human Services, and the Department of Justice.
Because of this strategic importance, the company has remained largely insulated from broader debates about curbing government spending.
According to data from USASpending.gov, Palantir has signed more than 300 government contracts as of July 2025.
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