In 2023, the rapidly evolving artificial intelligence (AI) space experienced an unprecedented surge, thanks to the advent of revolutionary generative AI chatbots like ChatGPT. This breakthrough technology breathed new life into the industry, propelling it to heights never seen before.
As a result, certain companies that had tirelessly pursued advancements in AI were finally reaping the rewards of their persistent efforts.
One company that particularly benefited from the ongoing AI frenzy is Palantir Technologies (NYSE: PLTR), a software developer that empowers organizations to create and govern artificial intelligence.
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This accelerated demand for Palantir’s cutting-edge AI solutions has been reflected in the company’s stock price, which is up by a whopping 185% since the start of the year, according to data retrieved on August 7.
Only Nvidia Corp’s shares (NASDAQ: NVDA) gained more since January 1, surging roughly 200% during that period. NVDA’s remarkable performance was also primarily driven by the AI boom.
Palantir stock price analysis
At the time of publication, shares of Palantir were standing at $18.20, after closing around 2.7% lower on Friday, August 4.
Over the past week, PLTR gained over 5.7%, and nearly 19% on a monthly basis, adding about $4.5 billion in market cap over that 30-day period.
The stock reached a 52-week high of $19.99 on August 1, a level not seen since November 2021. The share price has slightly retreated since then, by about 9%.
Palantir is the “Messi of AI,” analyst says
Palantir is primarily known as a company specializing in big data analytics that collaborates with the US government’s defense and intelligence agencies. The company provides a range of AI-oriented services for organizations across both the public and private sectors.
Popular stock market analyst and Wedbush’s Managing Director, Dan Ives, said Palantir is “the Messi of AI,” referencing the 36-year-old football player who many regard as the greatest of all time.
Ives said Palantir has a “golden path” for it to monetize after building “an AI fortress that is unmatched.”
“We believe Palantir has built an AI fortress that is unmatched and poised to be a major player in this AI Revolution over the next decade.”
– Wedbush analysts wrote in a note on Friday.
Citing Palantir’s broad experience in handling customer data, the company’s shift to a “pure-play AI name” is expected to help it leverage its current expertise to drive further developments and create AI solutions powered by high-quality data.
By taking advantage of its data-driven foundation, Palantir can exploit the power of the emerging large language models (LLMs) to improve platform capabilities.
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