Is Palantir Stock The 'Most Underrated AI-Exposed Play In The Market'?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 09 2024
0mins
Should l Buy PLTR?
Source: Benzinga
- Joe Terranova's View on Palantir:
- Joe Terranova believes Palantir Technologies Inc. is a strong play for the AI boom, considering it undervalued and underrated in the market.
- He personally owns Palantir stock and includes it in his momentum fund.
- Terranova highlights Palantir's significant exposure to government contracts and growing commercial business driven by AI.
- BofA Securities also added Palantir to its top 10 best U.S. ideas list, expecting further share price rally as the AI story shifts to software.
- The upcoming earnings season, with expectations high for tech stocks, will be crucial for Palantir's trajectory.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 129.130
Low
50.00
Averages
192.88
High
255.00
Current: 129.130
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palantir's Revenue Soars Amid AI Boom
- Significant Revenue Growth: Palantir has achieved double-digit revenue growth for several consecutive quarters amid the AI boom, demonstrating strong market performance and reinforcing its position as a tech startup.
- Substantial Investment Returns: An investment of $10,000 at Palantir's IPO would now be worth over $142,820, despite a decline from a peak of $180,000, indicating robust investment return potential.
- Dual Growth from Government and Commercial Clients: Palantir's government revenue continues to grow in double digits, while commercial clients are rapidly increasing, reflecting widespread demand for its software in data application and strategy revamping, suggesting significant future growth potential.
- AI Platform Boosts Earnings: The launch of the Artificial Intelligence Platform (AIP) in 2023 has supercharged Palantir's technology and earnings growth, with a surge in commercial customer numbers indicating that the company may see more shareholder gains ahead.
See More
Palantir Technologies IPO Investment Returns Astound Investors
- Significant Investment Returns: An investment of $10,000 in Palantir at its 2020 IPO would now exceed $142,820, despite a recent decline from a peak of $180,000, highlighting the company's robust growth potential in the AI sector.
- Government Contract Growth: Palantir has built a solid portfolio of government contracts, with government revenue continuing to grow in double digits, indicating a strong foundation in the public sector that is likely to drive future revenue growth.
- Surge in Commercial Customers: The launch of Palantir's software has led to a rapid increase in commercial customers, enhancing their ability to leverage data for decision-making, suggesting significant expansion potential in the commercial market with ample room for future growth.
- AI Platform Boost: The introduction of the Artificial Intelligence Platform (AIP) in 2023 has supercharged Palantir's technology and earnings growth, and combined with strong government and commercial performance, indicates the potential for increased shareholder returns in the future.
See More
Palantir and UiPath Compete in AI Market
- Market Leadership: Palantir Technologies has emerged as the clear leader in AI orchestration, with its AI platform recognized as one of the best tools for solving real-world problems in mission-critical settings, driving significant growth and achieving a market cap of $31.3 billion.
- Platform Advantage: Acting as an AI operating system, Palantir's platform gathers data and connects it to real-world assets, reducing errors and making insights more actionable, which is crucial for its strong position within the AI ecosystem.
- UiPath's Emergence: UiPath is developing its Maestro platform to become an orchestration platform for AI agents, leveraging its background in robotic process automation (RPA) to establish strong governance and compliance standards, positioning itself as a potential leader in this space.
- Investment Value Comparison: While Palantir's valuation is high with a forward price-to-sales ratio of 42 times, UiPath offers a more attractive investment opportunity with a forward P/S ratio below 3.5 times and a forward P/E of less than 15 times, suggesting better growth potential in the current market environment.
See More
Citi Identifies Rebound Potential in Software Stocks Amid AI Disruption Fears
- Market Panic Intensifies: Fears that AI could render 'software as a service' business models obsolete have led to software stocks plummeting over 20% in 2026, with an 8% drop in February alone, causing investor anxiety about market prospects.
- Citi's Rebound Opportunity: In a February 9 note, Citi identified software and services stocks with market caps over $2 billion that have fallen at least 10% in the past month, suggesting these stocks have rebound potential amid improving earnings expectations.
- Performance of Microsoft and Palantir: Despite being the worst-performing 'Magnificent Seven' stock in 2026, Microsoft is still a buy according to Citi and Goldman Sachs, while Palantir, down nearly 37% from its 52-week high, is viewed as a potential investment opportunity after beating earnings expectations.
- Importance of Earnings Momentum: Citi strategists emphasize that as investor panic subsides, the earnings momentum of software stocks will be crucial in attracting traders, with positive revisions expected to drive interest back to these undervalued stocks.
See More
Palantir's Stock Decline: Nvidia and AMD Emerge as New Favorites
- Palantir's High Valuation: Despite a significant stock pullback this year, Palantir's valuation remains astronomical at 128 times forward earnings, which may lead to declining investor confidence in its future growth prospects.
- Optimistic Outlook for Nvidia: Nvidia's forward earnings multiple stands at 24.5, and with the upcoming launch of the Rubin platform, which will support inference at up to 10 times lower costs, the company is expected to continue its growth trajectory and solidify its leadership in the AI chip market.
- AMD's Competitive Edge: Although AMD trades at nearly 32 times forward earnings, its Instinct MI400 chips match Nvidia's Vera Rubin in compute performance and memory bandwidth while offering 1.5 times the memory capacity and scale-out bandwidth, showcasing its potential as a credible challenger to Nvidia.
- Sustained Market Demand: Both Nvidia and AMD are poised to benefit from ongoing GPU demand, while Palantir's excellent product may not justify its high stock price, potentially hindering its ability to deliver market-beating returns.
See More
Burry Intensifies Attack on Palantir Technologies
- Ethical Controversy Escalates: Investor Michael Burry has publicly challenged Palantir's corporate ethics on social media, alleging covert smear campaigns and calling for evidence, which ties into an NHS investigation that could harm Palantir's reputation and future contract opportunities.
- Technical Analysis Warning: Burry's technical analysis suggests that Palantir's stock could plummet from its current price of $131.41 to between $50 and $60, indicating a potential decline of 54.34%, which may raise investor concerns about the company's future performance.
- CEO's Rebuttal: Palantir's CEO Alex Karp dismissed Burry's bearish outlook as “BatS—t Crazy,” emphasizing the company's strong revenue growth; however, Burry categorizes high-flying tech stocks as “frauds of the modern era,” warning that the AI bubble may be losing structural integrity.
- Poor Stock Performance: Palantir's shares have fallen 21.71% year-to-date, compared to a 1.88% decline in the Nasdaq 100, indicating relative weakness in the market that could affect investor confidence and future financing capabilities.
See More
Palantir's Revenue Soars Amid AI Boom
- Significant Revenue Growth: Palantir has achieved double-digit revenue growth for several consecutive quarters amid the AI boom, demonstrating strong market performance and reinforcing its position as a tech startup.
- Substantial Investment Returns: An investment of $10,000 at Palantir's IPO would now be worth over $142,820, despite a decline from a peak of $180,000, indicating robust investment return potential.
- Dual Growth from Government and Commercial Clients: Palantir's government revenue continues to grow in double digits, while commercial clients are rapidly increasing, reflecting widespread demand for its software in data application and strategy revamping, suggesting significant future growth potential.
- AI Platform Boosts Earnings: The launch of the Artificial Intelligence Platform (AIP) in 2023 has supercharged Palantir's technology and earnings growth, with a surge in commercial customer numbers indicating that the company may see more shareholder gains ahead.
See More
Palantir Technologies IPO Investment Returns Astound Investors
- Significant Investment Returns: An investment of $10,000 in Palantir at its 2020 IPO would now exceed $142,820, despite a recent decline from a peak of $180,000, highlighting the company's robust growth potential in the AI sector.
- Government Contract Growth: Palantir has built a solid portfolio of government contracts, with government revenue continuing to grow in double digits, indicating a strong foundation in the public sector that is likely to drive future revenue growth.
- Surge in Commercial Customers: The launch of Palantir's software has led to a rapid increase in commercial customers, enhancing their ability to leverage data for decision-making, suggesting significant expansion potential in the commercial market with ample room for future growth.
- AI Platform Boost: The introduction of the Artificial Intelligence Platform (AIP) in 2023 has supercharged Palantir's technology and earnings growth, and combined with strong government and commercial performance, indicates the potential for increased shareholder returns in the future.
See More
Palantir and UiPath Compete in AI Market
- Market Leadership: Palantir Technologies has emerged as the clear leader in AI orchestration, with its AI platform recognized as one of the best tools for solving real-world problems in mission-critical settings, driving significant growth and achieving a market cap of $31.3 billion.
- Platform Advantage: Acting as an AI operating system, Palantir's platform gathers data and connects it to real-world assets, reducing errors and making insights more actionable, which is crucial for its strong position within the AI ecosystem.
- UiPath's Emergence: UiPath is developing its Maestro platform to become an orchestration platform for AI agents, leveraging its background in robotic process automation (RPA) to establish strong governance and compliance standards, positioning itself as a potential leader in this space.
- Investment Value Comparison: While Palantir's valuation is high with a forward price-to-sales ratio of 42 times, UiPath offers a more attractive investment opportunity with a forward P/S ratio below 3.5 times and a forward P/E of less than 15 times, suggesting better growth potential in the current market environment.
See More
Citi Identifies Rebound Potential in Software Stocks Amid AI Disruption Fears
- Market Panic Intensifies: Fears that AI could render 'software as a service' business models obsolete have led to software stocks plummeting over 20% in 2026, with an 8% drop in February alone, causing investor anxiety about market prospects.
- Citi's Rebound Opportunity: In a February 9 note, Citi identified software and services stocks with market caps over $2 billion that have fallen at least 10% in the past month, suggesting these stocks have rebound potential amid improving earnings expectations.
- Performance of Microsoft and Palantir: Despite being the worst-performing 'Magnificent Seven' stock in 2026, Microsoft is still a buy according to Citi and Goldman Sachs, while Palantir, down nearly 37% from its 52-week high, is viewed as a potential investment opportunity after beating earnings expectations.
- Importance of Earnings Momentum: Citi strategists emphasize that as investor panic subsides, the earnings momentum of software stocks will be crucial in attracting traders, with positive revisions expected to drive interest back to these undervalued stocks.
See More
Palantir's Stock Decline: Nvidia and AMD Emerge as New Favorites
- Palantir's High Valuation: Despite a significant stock pullback this year, Palantir's valuation remains astronomical at 128 times forward earnings, which may lead to declining investor confidence in its future growth prospects.
- Optimistic Outlook for Nvidia: Nvidia's forward earnings multiple stands at 24.5, and with the upcoming launch of the Rubin platform, which will support inference at up to 10 times lower costs, the company is expected to continue its growth trajectory and solidify its leadership in the AI chip market.
- AMD's Competitive Edge: Although AMD trades at nearly 32 times forward earnings, its Instinct MI400 chips match Nvidia's Vera Rubin in compute performance and memory bandwidth while offering 1.5 times the memory capacity and scale-out bandwidth, showcasing its potential as a credible challenger to Nvidia.
- Sustained Market Demand: Both Nvidia and AMD are poised to benefit from ongoing GPU demand, while Palantir's excellent product may not justify its high stock price, potentially hindering its ability to deliver market-beating returns.
See More
Burry Intensifies Attack on Palantir Technologies
- Ethical Controversy Escalates: Investor Michael Burry has publicly challenged Palantir's corporate ethics on social media, alleging covert smear campaigns and calling for evidence, which ties into an NHS investigation that could harm Palantir's reputation and future contract opportunities.
- Technical Analysis Warning: Burry's technical analysis suggests that Palantir's stock could plummet from its current price of $131.41 to between $50 and $60, indicating a potential decline of 54.34%, which may raise investor concerns about the company's future performance.
- CEO's Rebuttal: Palantir's CEO Alex Karp dismissed Burry's bearish outlook as “BatS—t Crazy,” emphasizing the company's strong revenue growth; however, Burry categorizes high-flying tech stocks as “frauds of the modern era,” warning that the AI bubble may be losing structural integrity.
- Poor Stock Performance: Palantir's shares have fallen 21.71% year-to-date, compared to a 1.88% decline in the Nasdaq 100, indicating relative weakness in the market that could affect investor confidence and future financing capabilities.
See More
