Palantir (NYSE: PLTR) stock has been one of the favorite artificial intelligence (AI) picks in the current stock market cycle.
Now, Palantir seeks to diversify its income streams with a multi-year agreement announced on July 29 with Tree Energy Solutions, a leading producer of electric natural gas derived from green hydrogen (e-NG).
Palantir Foundry and the Palantir AI Platform (AIP) will support TES in supply chain management, simulation, investment optimization, and site selection.
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The main question is whether this diversification attempt can help Palantir stock reach its next target, which is set at the psychological threshold of $30.
Palantir stock price
PLTR stock trades at a valuation of $27.18 after adding 2.03% in the latest trading sessions, softening a decline of 5.89% in the previous five trading days.
Since 2024 started, PLTR stock has added 63.93% to its value on a year-to-date (YTD) basis.
Palantir stock is showing strong growth within a rising trend channel over the medium to long term.
PLTR shares have recently broken through the $25.80 resistance level, indicating further potential for growth.
Should there be any negative movements, $25.80 will now serve as support, while $27.50 is the next resistance level, which can be easily surpassed if the current pre-market gains of 1.58% hold.
Another positive sign is that PLTR shares are currently trading above the 50, 100, and 200-day simple moving averages (SMAs).
Analysts believe that PLTR stock faces an uphill battle towards $30
Despite Palantir stock posting significant progress, Wall Street analysts believe that its growth and profit margins are severely limited, as the overall sentiment is indicating a “hold” with an average price target set at $22.42.
Jefferies’ most recent price target on July 29 raised the price target for Palantir stock from $24 to $28 while maintaining a “hold” rating.
Analyst Brent Thill notes that while Palantir is the most expensive stock in their coverage, trading at 19 times CY25E revenue, the company has shown strong execution in consecutive quarters.
Thill views Palantir as a rare asset blending AI applications and infrastructure with near-term revenue momentum. Despite being “priced for perfection,” the stock may continue to trade on AI enthusiasm rather than fundamentals due to its unique ownership structure.
On July 16, Mizuho analyst Matthew Broome downgraded Palantir’s stock from “neutral” to “underperform,” citing its increasingly difficult-to-justify valuation.
Broome also raised the price target from $21 to $22, which still implies a 20% downside risk compared to the July 15 closing price. Despite Palantir’s recent strong performance, Mizuho analysts are concerned about the lack of visibility in its business.
Some analysts on Wall Street see PLTR stock above $30
On July 17, Wedbush analysts issued a bullish outlook for PLTR, suggesting the stock could nearly double in value. They highlight Palantir’s central role in the AI revolution and its expanding use cases across commercial and government sectors as key drivers of future growth.
Over the past year, Palantir has seen significant demand for its enterprise-scale AI solutions, helping organizations accelerate AI strategies, improve efficiencies, and achieve operational benefits beyond chat applications.
A notable milestone in Palantir’s growth has been the completion of over 1,300 boot camps, more than 500 of which have been completed in the past three months, showcasing the real-time value of their technology.
Wedbush maintains an “outperform” rating on the stock, with a price target of $35 and a new bull case target of $50 for 2025.
Despite already outperforming its peer group, Wedbush believes Palantir is still undervalued and poised to capitalize on the $1 trillion AI spending wave.
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