The share price of software giant Palantir (NYSE: PLTR) continued its upward momentum, reaching a new all-time high of $45 per share and breaking a market cap of $100 billion for the first time during the last trading session.
Following this rally, Wedbush’s Dan Ives referred to Palantir as the “Messi of AI,” likening the company’s growth in artificial intelligence to Argentinian soccer star Lionel Messi, he noted in an X post on October 24.
The analyst, who initially projected that PLTR would reach $45, indicated that the company will likely grow further in 2025. He highlighted potential benefits from the expanding AI-driven market, positioning Palantir and its CEO, Alex Karp, at the forefront of the AI revolution.
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“Messi of AI Palantir hitting $100 billion market cap the start of the Street just starting to understand the massive AI-driven market opportunity,” Ives said.
Why Ives is bullish on PLTR share price
Further insights into Ives’s outlook for PLTR in 2025 can be borrowed from his investor note in early October. In the note, which issued an ‘Outperform’ rating, he stated that more enterprises are strategically exploring how to integrate Palantir’s Artificial Intelligence Platform in 2025.
“[Palantir is] in a prime spot to continue expanding its pipeline/deal flow while providing more use cases coming forward to address critical problems across industries,” Wedbush noted.
PLTR’s ability to sustain this momentum will partly depend on the upcoming Q3 earnings report, where the company is expected to demonstrate increased revenue, mainly through its venture into AI.
Notably, in the quarter ending June 2024, the firm’s revenue increased by 27% year-over-year to reach $678.1 million. This growth led analysts to revise Palantir’s full-year revenue guidance to $2.746 billion.
Uncertainty regarding PLTR share price rally
Not all market players view the PLTR bull run as sustainable. Concerns have been raised that the stock’s rally might not entirely reflect the company’s actual valuation.
These fears suggest the stock might be overvalued and could face a potential correction in the near future, which some analysts have flagged as a red flag.
Meanwhile, another Wall Street analyst, Bernard Zambonin, warned that investors should cautiously approach the upcoming earnings report. He noted that Palantir’s heavy reliance on positive annual guidance updates to bolster demand perceptions is risky, particularly if forecasts fall short.
This uncertainty has also prompted mixed outlooks for PLTR from other Wall Street analysts. For instance, Raymond James downgraded the stock from ‘Outperform’ to ‘Market Perform,’ while BofA Securities maintained a ‘Buy’ rating. Canaccord Genuity kept a ‘Hold’ rating on PLTR’s share price.
What next for PLTR share price
PLTR stock was trading at $44.86 as of press time, rallying almost 3% in the past 24 hours. The equity has surged 170% year-to-date in 2024.
Looking at the next price trajectory, an analysis by a stock trading expert who goes by the pseudonym Market Maestro in an X post on October 25 suggested that PLTR might have further upside potential.
This is based on the observation that the stock has formed a bullish cup-and-handle pattern on the weekly chart, with a right shoulder (RS) formation indicating a possible support retest before a breakout toward higher price targets.
Institutional money flow indicators support this bullish outlook, showing increased interest from large investors.
After reaching the $45 record high, the next upside target remains at $50, a price target backed by Bank of America (NYSE: BAC).
