Palantir’s (NASDAQ: PLTR) run appears unstoppable at the moment, with the software giant now targeting a high of $150.
Indeed, with the rally, some investors might feel left out of buying positions in the company, which in turn opens the door for scouting the best entry points.
Notably, Palantir ended Tuesday’s session at $139, culminating in an impressive six-month run during which the stock has surged 107%.
Ideal time to buy PLTR stock
For investors looking to enter PLTR, Finbold consulted OpenAI’s artificial intelligence (AI) tool ChatGPT, which stressed the need to hold off at current levels.
According to ChatGPT’s research and independent analysis, the most attractive entry point for PLTR is in the $125 to $132 range, which offers a more favorable balance of risk and reward than buying near recent highs around $140.
The AI model noted that the $130 to $132 level has consistently acted as a strong technical support zone in recent months. If the stock dips back into this area, the risk of further downside is more manageable, making it a more defensible buying level.
Another key consideration is valuation, with ChatGPT noting that Palantir is trading at a steep premium, boasting a PE ratio of 607.26. Such high valuations leave the stock vulnerable to sharp corrections if investor sentiment or enthusiasm around AI growth slows.
At the same time, the model stressed that buying closer to $125 provides a useful buffer against this risk. Rather than chasing momentum, ChatGPT suggested taking advantage of market weakness.
For instance, it noted that past pullbacks of 5% to 10% demonstrate that Palantir can drop quickly in response to relatively minor news. However, these dips can be opportunities to buy if the long-term business case remains intact.
PLTR already priced in momentum
While Palantir has strong fundamentals in the AI space, particularly with government contracts and enterprise adoption, the market has already priced in aggressive growth expectations.
To this point, ChatGPT stated that the stock’s future gains will depend on the company consistently outperforming those expectations.
Ultimately, it advised investors to be cautious about buying above $140 unless a significant catalyst, such as a major earnings beat or the announcement of new high-value contracts, is present.
Featured image via Shutterstock
