Game-changing trends such as AI don’t come around every day, and those companies that have succeeded in harnessing its power have seen their fortunes grow by leaps and bounds over the past few years. Palantir Technologies (NASDAQ:PLTR) is certainly one of those fortunate firms basking in AI’s glow – and its shareholders have been reaping the benefits.
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All told, the big data company – whose Artificial Intelligence Platform (AIP) has been rapidly adopted by both business and sovereign clients to improve decision-making – has seen its share price surge by almost 800% since January 2024.
Of course, that begs the question regarding how much longer the good times will last. Top investor Amrita Roy does not believe the party will be stopping anytime soon.
“PLTR stock is a winner as AI inference is at an inflection, positioning AIP like how CUDA enabled Nvidia to dominate in the training phase,” explains the 5-star investor, who is among the top 4% of TipRanks’ stock pros.
Roy further details that similar to Nvidia’s position at the center of the AI training revolution, Palantir is smack dab in the middle of the “application/inference phase.” This makes the company well-placed to continue enjoying the spoils of this burgeoning field.
“AIP’s AI-native control layer embeds itself across the entire operating stack of a company, takes real-time data across systems, and turns it into actionable simulations across business cases,” notes Roy. “In other words, once AIP is deployed, it becomes core infrastructure.”
Moreover, the investor spots additional of dollar signs ahead thanks to the “One Big Beautiful Bill” and its large defense spending provisions. Roy expects the Trump administration to be all-in on a “software-centric approach” to security, meaning that there will be increasing partnerships between the U.S. government and Palantir.
While the big knock on Palantir is its high valuation, the investor is certainly not ignoring this elephant in the room. While Roy notes that roughly half of its multiple expansion year-to-date has been propelled by investor optimism, she also believes that the market could continue to push PLTR higher – as long as there is no sentiment-changing event such as worrisome macroeconomic developments or a disappointing earnings report.
“Palantir is unarguably a winner in the second wave of the AI Revolution, and the party will likely continue until investors see signs of the AI train slowing down,” concludes Roy, who is reiterating a Buy rating for PLTR. (To watch Amrita Roy’s track record, click here)
Roy’s optimism is not reflected on Wall Street, however. With 10 Hold ratings significantly outpacing 3 Buys and 3 Sells, PLTR has a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $104.85 has a downside of more than 30%. (See PLTR stock forecast)
