Palantir stock (PLTR) has been one of the hottest AI trades of 2025, yet it continues to divide Wall Street. Bulls see a once-in-a-generation growth story, while skeptics worry about stretched valuations and customer concentration. Now one analyst says the concerns are misplaced, and that Palantir could become nothing less than the “operating system” for enterprise AI.
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Analyst Defends Palantir against Investor Fears
Speaking on CNBC, Derek Yan, Senior Investment Strategist at KraneShares, pushed back on the wave of caution surrounding Palantir. He noted that the recent selling pressure was more about broad market factors and profit taking rather than any flaw in the company’s fundamentals.
Yan argued that Palantir is uniquely positioned in the AI race. As the cost of computing continues to decline, enterprises have a growing incentive to automate workflows and deploy AI systems. He said Palantir’s platform gives investors exposure to that structural growth trend, calling it a “singular growth opportunity.” In his view, Palantir is building the backbone of enterprise AI.
Palantir’s Growth Story Builds Momentum
This conviction is reflected in Palantir’s numbers. The company’s latest quarter showed revenue growth of 48% year over year, while full-year guidance points to sales growth around 45%. These figures stand out in a tech market where many peers are struggling to keep growth in double digits.
Skeptics often highlight Palantir’s heavy reliance on a small group of customers, particularly government contracts. But the company is steadily expanding into new verticals. Its Artificial Intelligence Platform (AIP) is being adopted across commercial enterprises, where Palantir has run intensive “bootcamps” to show businesses how its software can generate measurable results. That outreach is beginning to pay off, and analysts believe it will anchor growth far beyond defense contracts.
Enterprise AI Spending Creates Massive Tailwind
Palantir’s long-term opportunity is tied to the explosion in enterprise AI spending. Hyperscalers and global enterprises are expected to spend $1.15 trillion on AI infrastructure between 2025 and 2027, more than double the $477 billion invested from 2022 through 2024. If Palantir can capture even a fraction of that spend, its valuation today may look cheap in hindsight.
The Carillon Eagle Mid Cap Growth Fund recently backed that view in a quarterly investor letter, praising Palantir’s expanding role with both U.S. and NATO contracts as well as its growing footprint in commercial markets. The fund noted that Palantir’s software delivers “quantifiable added value,” which strengthens the case for long-term adoption.
Is Palantir Stock a Buy, Hold, or Sell?
According to the latest data on TipRanks, 20 Wall Street analysts have weighed in on Palantir’s outlook over the past three months. The consensus rating lands at “Hold,” with five analysts recommending a Buy, 13 urging investors to Hold, and two advising a Sell.
The average 12-month PLTR price target sits at $155.39, which is about 8.5% below Palantir’s most recent price.
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