Palantir Stock (PLTR) Hits Record High: 3 Reasons the Rally Isn't Over
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1. Government AI Budgets Are Set to Surge
Palantir continues to secure major contracts with U.S. defense and intelligence agencies and is actively involved in key federal AI initiatives, such as the U.S. Navy's tech modernization program and Project Stargate, a national security-focused AI plan. In Q1 2025, Palantir's U.S. government revenue grew 45% year-over-year.
Notably, Palantir is strongly involved in two key areas where President Donald Trump plans major spending: defense and energy. Its software is already used by the U.S. military, NATO partners, and big energy companies. As the government rolls out large funding for infrastructure and national security through the proposed 'Big, Beautiful Bill,' Palantir is expected to see even more contract opportunities.
2. Wedbush Sees More Upside Ahead for PLTR Stock
Recently, Wedbush's four-star-rated analyst Daniel Ives raised his price target on PLTR stock to a Street-high $160 while maintaining his Buy rating. The new target suggests more than 7% upside from current levels, reflecting continued confidence in the company's long-term AI potential.
Ives called Palantir 'one of the best AI plays in the world' and also suggested the company could eventually reach a $1 trillion valuation.
While he acknowledged that the stock is expensive, Ives views Palantir as the clear leader poised to tap into trillions in future AI spending. He also thinks Wall Street is underestimating the potential of Palantir's U.S. commercial AI platform (AIP), which he says could generate over $1 billion in annual revenue in the next few years.
3. Palantir's Low-Code AI Platform Sets It Apart From the Competition
Palantir's AI platform stands out because it's easy to use, making it accessible even for people without a technical background. It helps businesses quickly build and roll out AI tools across multiple industries. With strong security and customization features, it's hard for competitors to match. As more companies look for simple, powerful AI solutions, Palantir is in a great position to lead and grow its market share.
Is Palantir a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on PLTR stock, based on three Buys, nine Holds, and four Sells assigned in the last three months. The average Palantir share price target is $106.71, which implies a potential downside of 28.5% from current levels.
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