The artificial intelligence (AI) revolution is in full swing, and Wedbush analyst Dan Ives recognizes that Palantir (NYSE: PLTR) will be at the forefront of the learning process, likening its stock to the “Messi of AI” while setting a bullish price target of $50 for PLTR shares.
Here’s why Ives believes that Palantir is a perfect pick for investors looking to leverage AI advancements, suggesting it could nearly double from here with a new ‘outperform’ rating.
Firstly, the company is poised to expand its pipeline significantly as its AI platform, AIP, remains at the forefront of technological advancements. Palantir, often regarded as the “Messi of AI” by Ives, is well-positioned to capitalize on this shift.
Picks for you
Secondly, since 2024 started, PLTR stock has heavily benefited from the ongoing AI revolution. It added over 70% to its value while boasting gains of 9.30% in the previous month alone.
However, it is essential to notice that PLTR shares have experienced significant volatility throughout this period and heavy short interest, which often surpassed a level of 20%. This interest has since subsided and now makes up only 4% of the available shares.
There are some stark opponents of Dan Ives’s bullish stance on PLTR stock
In a completely different opinion from Ives’s, Mizuho analyst Matthew Broome downgraded Palantir’s stock from “neutral” to “underperform” on July 16, citing its increasingly difficult-to-justify valuation.
Despite raising the PLTR price target from $21 to $22, Broome’s PT still suggests a 23% downside risk compared to the July 15 closing price.
In particular, analysts at Mizuho expressed concerns about Palantir’s business’s lack of visibility despite its recent strong performance.
Broome notes that some recent positive results are of lower quality, and he has limited confidence in Palantir’s ability to deliver strong results consistently.
Most of the Wall Street analysts seem to side with Broome, as they have a “hold” rating on PLTR shares and an average price target of $22.55, which represents a potential 20.09% downside from current price levels.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
