Palantir Technologies Inc. (PLTR): An AI Stock You Should Not Have Missed (2024)

Usman Kabir

·5 min read

We recently compiled a list of the AI News You Should Not Have Missed.In this article, we are going to take a look at where Palantir Technologies Inc. (NYSE:PLTR) stands against the other AI stocks.

Artificial intelligence (AI) is the new buzzword that is attracting the attention of almost everyone on Wall Street. The sector, characterized by rapid growth, significant investment, and intense competition, has witnessed a surge in venture capital (VC) funding over the past few months. In 2023, global VC investment in AI startups exceeded $94 billion. This surge in funding reflects the strong belief that these investors have in the transformative potential of AI across various industries. Merger and acquisition activity in the field is also on the rise, with more than 1,100 such deals in 2023 alone. Larger tech companies are actively acquiring AI startups to bolster their capabilities in the shortest time possible.

Some sector-specific numbers highlight the AI potential in minute detail. For example, in the healthcare universe, the AI healthcare market is projected to reach $102 billion by 2028, with startups focusing on diagnostics, drug discovery, and personalized medicine. In finance, AI-driven financial services are expected to reach a market value of $26.67 billion by 2026, with startups focusing on fintech, fraud detection, and algorithmic trading. In the retail world, AI is revolutionizing through personalized shopping experiences and supply chain optimization, with the sector projected to grow at a 34.4% CAGR by 2030.

Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.

Hedge fund interest in AI has increased in the past few months, an indication of the long-term growth potential of the industry. During routine interviews with the media, investor conferences, and through their 13F activity, hedge fund managers have detailed their bullish views on AI. For example, Bill Ackman, the chief Pershing Square Capital Management, has said that AI startups represent the next frontier in technology, offering unparalleled opportunities for innovation. He adds that the key is finding those with a clear vision and the ability to execute in a rapidly evolving landscape.

Similarly, Ray Dalio of Bridgewater Associates is of the opinion that the impact of AI on industries is undeniable, and the startups driving this change are in a unique position to capitalize on it. Dalio adds, however, that it's crucial to invest in those that are building sustainable, ethical models, as they will be the long-term winners. Paul Tudor Jones of Tudor Investment Corporation believes that AI startups are not just about tech but about transforming entire industries. He notes that the challenge is in navigating the hype and identifying the true innovators who have the potential to disrupt established markets.

Read more about these developments by accessing Billionaire Stan Druckenmiller Is Betting On AI Infrastructure, Tobacco and Industrial Stocks and 10 Tech Stocks to Monitor Amid Market Volatility According to Bernstein Analyst.

Our Methodology

For this article, we selected AI stocks based on the latest news and analyst ratings. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Palantir Technologies Inc. (PLTR): An AI Stock You Should Not Have Missed (1)

A software engineer manipulating a vast network of code on virtual monitors.

Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders: 44

Palantir Technologies Inc. (NYSE:PLTR) builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations. The company has shown excellent growth patterns in the past few months. Over the past year, the shares have gained more than 124%, beating the benchmark S&P 500 by a handsome 96%. This outperformance has been driven by a focus on AI products and the leap towards monetization at scale in this regard. These AI revenues have helped the firm post solid financials so far this year. The core strength of the firm is in tech expertise in advanced data integration and analytics platforms, like Gotham and Foundry, which cater to government and commercial sectors.

Palantir Technologies Inc. (NYSE:PLTR) has started turning heads on Wall Street. Northland recently initiated coverage of the stock with a Market Perform rating and $35 price target. In an investor note, the advisory highlighted that the artificial intelligence operating system of Palantir, powered by the Ontology software, had overcomes myriad roadblocks to adoption and was igniting AI use across the enterprise landscape.

Overall PLTR ranks 10th on our list of the AI stocks you should not have missed. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

Disclosure: None. This article is originally published atInsider Monkey.

Palantir Technologies Inc. (PLTR): An AI Stock You Should Not Have Missed (2024)

FAQs

What does Palantir AI do? ›

Palantir lets you define granular access control policies at the integration stage, then propagate those policies intelligently across the system. This enables models to be promoted to collaboration confidently with granular data security and transparent data governance.

Is Palantir a good company? ›

Palantir Technologies has an employee rating of 3.8 out of 5 stars, based on 684 company reviews on Glassdoor which indicates that most employees have a good working experience there.

Is PLTR a good stock to buy now? ›

In the current month, PLTR has received 8 Buy Ratings, 8 Hold Ratings, and 12 Sell Ratings. PLTR average Analyst price target in the past 3 months is $25.42.

What is the target price for Palantir stock? ›

Stock Price Targets
High$38.00
Median$28.00
Low$9.00
Average$26.11
Current Price$30.59

Can PLTR hit $100? ›

That's a compounded annual growth rate (CAGR) of over 20%, meaning it would take eight years to reach $100 per share if it kept growing at that rate.

Will Palantir ever make money? ›

Is Palantir a good investment? Palantir estimates that its total addressable market (TAM) is roughly $119 billion and some analysts project revenue to reach $9 billion by 2026. It seems to be on its way there as the company stands firm behind its projected annual revenue growth of 30% or more through 2025.

Is Palantir a Chinese company? ›

Palantir Technologies Inc. is a public American company that specializes in software platforms for big data analytics.

Where will Palantir stock be in 5 years? ›

A ton of growth is already baked into Palantir's stock price

Wall Street analysts project 21% growth in 2024 and 2025, so using a 20% growth rate over the next five years would probably be realistic.

Is Palantir a long term buy? ›

If we consider the growing demand for data in the U.S., and indeed the world, Palantir (NYSE: PLTR) looks like a great long-term investment for investors wanting a slice of the highly profitable big data analytics pie.

Will Palantir stock recover? ›

With its latest pop, Palantir stock is now up 55% in 2024 and has started recovering from its recent pullback. This company is getting a nice shot in the arm thanks to the growing adoption of artificial intelligence (AI) software.

Who are the biggest investors in PLTR? ›

Largest shareholders include Vanguard Group Inc, BlackRock Inc., VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VIMSX - Vanguard Mid-Cap Index Fund Investor Shares, State Street Corp, Renaissance Technologies Llc, Geode Capital Management, Llc, VEXMX - Vanguard Extended Market Index Fund Investor ...

What will Palantir stock be worth in 2025? ›

We expect the stock to still trade at a similar multiple next year, putting our estimate for the stock price for Palantir at $31 in 2025, which is 2.11% higher than the stock is trading today. We also expect the company to surpass $1 billion in free cash flow in 2025, with $1.052 billion.

What is the 12 month stock forecast for Palantir? ›

Based on analysts offering 12 month price targets for PLTR in the last 3 months. The average price target is $25.42 with a high estimate of $38 and a low estimate of $9.

Does Palantir pay dividends? ›

Palantir Technologies (DE:PTX) does not pay a dividend.

What is the fair price for palantir? ›

As of 2024-09-02, the Fair Value of Palantir Technologies Inc (PLTR) is 4.54 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 31.48 USD, the upside of Palantir Technologies Inc is -85.6%.

Is PLTR Stock A Buy? Here's What Technical ...Investor's Business Dailyhttps://www.investors.com ›

There's plenty for bulls and bears to hash out over Palantir Technologies (PLTR). Bulls point to improved profitability for PLTR stock. Bears focus on wheth...
Get Palantir Technologies Inc (PLTR:NYSE) real-time stock quotes, news, price and financial information from CNBC.
With impressive revenue growth, little debt and a suppressed share price is Palantir Technologies (NASDAQ: PLTR) stock now a good investment?

What does Palantir actually do? ›

Palantir Technologies Inc. is a public American company that specializes in software platforms for big data analytics. Headquartered in Denver, Colorado, it was founded by Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp in 2003.

Could Palantir be the best AI stock? ›

Palantir (NYSE: PLTR) generated buzz as one of the best artificial intelligence (AI) stocks in the market. Although its AI software has been widely used for years, its latest product, the Artificial Intelligence Platform (AIP), has been a massive success.

Who is Palantir's biggest competitor? ›

Top Competitors and Alternatives of Palantir

The top three of Palantir's competitors in the Big Data Analytics category are Databricks with 15.53%, Azure Databricks with 14.70%, Apache Hadoop with 14.03% market share.

Who are Palantir's biggest customers? ›

Companies using Palantir Platform for Analytics and BI include: BP, a United Kingdom based Oil, Gas and Chemicals organisation with 67600 employees and revenues of $241.39 billion, Department of Agriculture, a United States based Government organisation with 100000 employees and revenues of $230.00 billion, Stellantis ...

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