Palantir Technologies (PLTR) shares have been on a roll, buoyed by the buzz surrounding its upcoming inclusion in the S&P 500 and the broader market’s bullish sentiment. Adding to the excitement, Wedbush analyst Daniel Ives believes the stock still has room to run, maintaining his Outperform rating and boosting the price target from $38 to $45.
Ives’ optimism stems from his growing confidence in Palantir’s enterprise-driven AIP (Artificial Intelligence Platform) strategy. Wedbush’s research indicates that more and more companies are actively exploring the deployment of Palantir’s proprietary AI technology in 2025. With AI spending projected to skyrocket within IT budgets next year, Ives sees Palantir as perfectly positioned to capitalize on this surge in demand, expanding its pipeline and deal flow.
Palantir has been diligently expanding the use cases for its flagship products, which in turn has fostered a thriving partner ecosystem. The company is experiencing a surge in demand for enterprise-scale and enterprise-ready generative AI across the board. Ives views this as a major growth driver for Palantir’s U.S. commercial business over the next 12 to 18 months.
New and existing customers, both in the commercial and federal government sectors, are increasingly embracing Palantir’s technology stack, according to Ives’ channel checks. The key to success for the Alex Karp-led company lies in converting its boot camp deals. This strategy has proven effective in accelerating the closing of multi-year, multi-million-dollar contracts.
From the customer’s perspective, Palantir’s Foundry and AIP offer strategic differentiation for enterprises seeking to optimize operations at scale. These solutions effectively address key concerns for businesses. Ives summarizes Palantir’s current state as “firing on all cylinders around AIP.” He believes this strategy represents a paradigm shift for the company, potentially impacting its valuation heading into 2025.
Palantir closed Wednesday’s session up 0.60% at $37.12, according to Benzinga Pro data. The stock has enjoyed a remarkable 116% gain year-to-date.
