‘Load Up,’ Says Top Investor as Palantir Stock Drops – Sees 30–40% Upside Ahead

Palantir (NASDAQ:PLTR) is taking a hit, with the stock dropping about 12% over the past two trading days after ‘Big Short’ investor Michael Burry took to X to question the company’s position in the enterprise AI race. The comments came at a fragile moment for the stock, raising doubts about whether Palantir can maintain its standing as competition intensifies across the sector.

In the post, Burry argued that “Anthropic is eating $PLTR Palantir’s lunch,” adding that the rival is gaining ground by offering what he described as “an easier, cheaper, intuitive solution for businesses.” He contrasted that with Palantir’s heavier reliance on government work, which he characterized as “low margin and small.” Burry also pointed to Anthropic’s rapid scale, noting the company surged from $9 billion to $30 billion in annual recurring revenue within months, compared to the much longer path it took Palantir to reach similar levels.

Burry also zeroed in on valuation, suggesting the stock reflects expectations that leave little room for missteps. That argument carries weight given Palantir’s premium multiples, which have been justified by strong growth but also leave shares vulnerable when confidence begins to fade.

So, are we looking at meaningful cracks in the Palantir thesis, or just another shakeout in a volatile high-growth name? Top investor Oliver Rodzianko leans toward the latter, looking beyond the valuation debate and instead pointing to Palantir’s expanding footprint in defense and government contracts, where demand continues to build and long-term opportunities remain intact.

“Palantir remains expensive but is positioned as NATO’s core modernization engine amid rising global military spending,” states Rodzianko, who is among the top 1% of stock pros covered by TipRanks.

Rodzianko notes that military expenditures around the world increased by 9.4% in 2024, which was the sharpest jump since 1988. This is no mere cyclical shift, and the investor argues that this puts Palantir in a “compounding vector.”

While U.S. commercial revenues are also rising (the company is expecting growth of at least 115% in 2026), the investor is enthralled by the potent mixture of the company’s technological acumen and the deep pockets of government defense spending.

“The most exciting aspect of Palantir is still its Silicon Valley roots, with founder Thiel and a small gang of revolutionary upstarts bringing world-changing technology to the forefront of the defense industry of the West,” adds Rodzianko.

The investor goes so far as to suggest that Palantir could become the Apple of the defense industry. In that sense, the company has an “immense responsibility” to play a vital role in the defense ecosystem of Western nations.

On that score, Rodzianko has faith that the company will act conscientiously and wisely. He’s therefore bullish about Palantir’s prospects and the opportunity for investors.

“It requires patience, humility, and a steady hand from management that does not view war as a profit vector but rather peace as the long-term compounding horizon instead,” concludes Rodzianko.

Along with a Buy rating, Rodzianko is predicting 30% to 40% upside in the coming 12 months. (To watch Rodzianko’s track record, click here)

Wall Street, for its part, is still leaning in Palantir’s favor, with 21 analysts weighing in and the majority landing on the Buy side, supporting an overall Moderate Buy consensus rating. The breakdown shows 14 Buys, 5 Holds, and 2 Sells, and the average price target sits at $194.61, implying about 50% upside from current levels. (See PLTR stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.