Palantir Technologies: AI Supercycle Star or Overhyped Risk?

Palantir Technologies ( (PLTR) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Palantir Technologies has become one of the hottest names in artificial intelligence, with its stock up roughly 171% over the past year and more than 2,400% in three years, even as near‑term moves have turned choppy. Despite the huge rally, Wall Street remains cautious: the consensus rating sits at Hold from 17 analysts, and the average 12‑month price target of about $192.88 implies only modest upside from the recent $178.96 share price. Some high‑profile voices, however, are breaking from the pack. Citi’s Tyler Radke upgraded Palantir to Buy/High Risk and set a $235 target, betting on what he calls a “commercial + government supercycle” in 2026 that could push revenue growth as high as 70–80% in a bullish scenario. Wedbush’s Daniel Ives is similarly upbeat, labeling Palantir a future “trillion‑dollar” company and assigning a $230 target, arguing that explosive demand for its AI Platform (AIP) across both corporate and government clients justifies a premium valuation.

Underpinning this optimism is a string of powerful operating trends. Palantir reported 63% year‑over‑year revenue growth in the third quarter to $1.18 billion, with strong margins and a hefty $6.4 billion cash pile, while adjusted Remaining Deal Value in commercial accounts jumped more than 250% year‑over‑year, signaling large expansion potential. The company is landing high‑profile deals, from a $448 million AI partnership with the U.S. Navy to new commercial projects such as real‑time AI and computer vision in professional rodeo. At the same time, Palantir is fighting a closely watched legal battle with Percepta, a startup founded by ex‑employees it accuses of stealing proprietary code. The defendants argue Palantir’s non‑compete clauses are overly broad and unenforceable, raising questions about talent retention and IP protection. For investors, the picture is a classic high‑growth, high‑risk setup: Palantir Technologies is executing strongly in AI and drawing bold price targets from top analysts, but faces legal uncertainty and valuation concerns that keep much of Wall Street on the sidelines.