Palantir (NASDAQ:PLTR) has emerged as a noteworthy player in the artificial intelligence (AI) sector, particularly after its impressive post-earnings surge in May, making it a compelling AI investment alongside giants like Nvidia (NASDAQ:NVDA). While Palantir stock’s momentum has simmered down in recent months, the company remains dedicated to AI advancements and expanding its profit margins.
CEO Alex Karp’s aspiration to have Palantir “embarrass” its competitors in collaborating with the U.S. government underscores the company’s core contracts’ significance. While its government dealings may make Palantir appear complex compared to tech titans like Nvidia and FAANG companies, it is rapidly gaining ground in both government and commercial AI sectors.
Despite being overshadowed by mega-cap peers such as Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG) in the AI arena, Palantir is far from being an underdog. It’s actively investing in AI capabilities and securing substantial government contracts. Furthermore, Palantir’s recent triumphs, like the potential £480 million deal with the U.K. National Health Service and a partnership with PwC to leverage its Foundry platform for bolstering AI capabilities, exemplify its growing influence.
Although Palantir’s stock remains within a consolidation channel since June 2023, recent developments are poised to drive growth. In the current market downtrend, PLTR may face challenges rising independently but remains a promising choice for investors eyeing AI-focused tech firms.
Palantir’s distinctive strength lies in its government trustworthiness, setting it apart from competitors. Transitioning from government to corporate deals is expected to be a smoother journey, positioning Palantir favorably as it enters the AI commercial landscape.
Wall Street analyst Dan Ives of Wedbush Securities believes Palantir’s monetization story on the commercial side is on a “golden path.” With commercial tailwinds anticipated in the latter half of this year and into 2024, Palantir is poised to shine in the AI software sector as companies shift from accumulating AI chips to harnessing their AI capabilities effectively.
In conclusion, Dan Ives’ bullish outlook on Palantir stock, with a $25.00 price target (nearly 59% higher than its recent closing price), reflects the company’s AI prowess and potential for significant growth. As Palantir continues to strengthen its position in the AI market, its ambitions appear far from unrealistic.
Featured Image: Megapixl
Author Stephanie Bédard-Châteauneuf 
