Even during its ascendance in the second half of 2024, Wall Street experts were issuing warnings that Palantir (NASDAQ: PLTR) stock is likely to contract as the firm’s strength has already been priced in by October of the year.
Despite this, PLTR shares continued soaring until they peaked on February 18, 2025, at $124.62, having recorded a 200.94% post-election rally. Since then, trading has been downhill, and the equity corrected 36.62% to its press time price of $78.71.
Under the circumstances and with the increasing fears of a recession, Finbold consulted the advanced DeepSeek artificial intelligence (AI) model, also available through its own AI price prediction tool, to determine whether investors should ‘buy the dip’ or sell PLTR stock while it is still trading at a relatively high price.
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DeepSeek sets PLTR stock price target for December 31, 2025
DeepSeek was quick to provide a positive yet sober assessment of Palantir, describing the company as strong but the performance of its equity as concerning.
Specifically, the AI examined the firm’s growth in the government and commercial sections and described it as strong but not explosive.
It simultaneously estimated that, thanks to its involvement with the artificial intelligence sector, Palantir is operating in a rapidly expanding and rising industry.
Still, DeepSeek immediately pointed out that the AI industry is getting somewhat crowded and that competition is rapidly getting stiffer while identifying Snowflake (NYSE: SNOW), Microsoft (NASDAQ: MSFT), and government regulators as especially potent pressure agents.
Finally, the platform matched the previous analyst assessments and opined that Palantir’s current valuation seems dubious. All in all, DeepSeek explained that PLTR stock is likely to end the year trading at $70 – below its press time price but still signaling a level of confidence in what the firm had already achieved.
DeepSeek’s PLTR stock price target matches Wall Street forecast average
Interestingly, DeepSeek’s Palantir share price target for December 31, 2025, falls near the midpoint of recent analyst forecasts. The equity’s performance since the start of the current year generated a relatively equal spread among prominent Wall Street experts.
On the bullish side, Wedbush’s Dan Ives opined as recently as March 3 that, in essence, Palantir’s bull case remains intact as he set his price prediction at $120 – just short of the February highs.
On the other hand, RBC Capital and Deutsche Bank fell on the other side of the spectrum with their $40 and $50 forecasts, demonstrating a clear belief that an even greater correction is ahead.
Featured image via Shutterstock
