Palantir Technologies Inc. (NYSE:PLTR) could emerge as "the next Oracle" in the artificial intelligence revolution, according to Wedbush Securities analyst Dan Ives, who dubbed the data analytics firm "the Messi of AI" despite its stock already surging 395.42% in 2024.
What Happened: The company's stock, trading at $82.14, has become the S&P 500's top performer this year, pushing its market capitalization to $183.23 billion. This remarkable run has positioned Palantir well above Wedbush's $75 price target, though Ives maintains strong conviction in the company's growth trajectory.
"Looking ahead to the next 5-10 years, I believe it's all about Palantir. In the context of the AI revolution, this is just the beginning," Ives emphasized on CNBC's Closing Bell Overtime. He describes Palantir as a "table-pounder" stock that investors should consider adding to their portfolios, despite its current price-to-earnings ratio of 411.90.
Former Palantir employee Alex Fishman, now with Empros Capital, provided additional insight into the company's potential: "When I look at Palantir, it's one of the few companies where I can easily envision it becoming 10 or 20 times its current size."
Fishman highlighted Palantir's crucial role in defense and commercial sectors, describing it as "the glue that ties everything together" in coordinating critical technological efforts.
Why It Matters: Wall Street's broader consensus remains more conservative, with an average price target of $35.58 based on 20 analyst ratings. However, recent updates suggest growing optimism. UBS issued an $80 price target on December 19, while Mizuho and Baird released positive outlooks, though their average target of $64.67 still implies a potential downside.
The company's technical indicators suggest room for continued growth, with an RSI reading of 62 indicating the stock isn't yet in overbought territory despite its dramatic rise. The stock's 52-week range of $15.66 to $84.80 reflects its volatile but upward trajectory.
In the same discussion, Ives also raised Apple Inc.'s (NASDAQ:AAPL) price target to $325, citing AI initiatives, though he emphasized Palantir's unique position in the enterprise AI space. As companies increasingly adopt AI solutions, Ives believes Palantir's commercial expansion and defense sector dominance position it for continued growth into 2025.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
