Palantir Stock Soars on AI Demand, Gaining $35 Billion in Market Cap
Palantir Technologies (PLTR) witnessed a remarkable surge in premarket trading, with shares rallying over 18%. This surge stems from the company's upbeat annual revenue projections, driven by heightened demand for its software and data analytics services.
Palantir, known for providing services to governments and businesses, anticipates an increase of approximately $35 billion in market capitalization, based on the current share price of $99.31.
"Palantir is among the companies riding the AI wave, capitalizing on significant investments by various industries seeking to enhance their technological capabilities," noted Russ Mould, Investment Director at AJ Bell.
Palantir's AIP platform, co-founded by tech billionaire Peter Thiel, has played a pivotal role in testing, debugging code, and evaluating AI-related scenarios. This platform has attracted significant attention from businesses seeking to deploy generative AI technology.
"Palantir has emerged as the Michael Jordan of AI stocks, capturing investor enthusiasm and delivering crucial wins when it matters most," stated Matt Britzman, Senior Equity Analyst at Hargreaves Lansdown.
Despite concerns raised by White House press secretary Karoline Leavitt regarding the national security implications of DeepSeek, Palantir's Chief Revenue Officer, Ryan Taylor, remains confident. He believes that the company's analytics services, specializing in supply chain and logistics management, could benefit from heightened demand amidst the current geopolitical landscape.
Several analysts have raised their price targets for Palantir stock, with Morgan Stanley upgrading its rating to "equalweight" from "underweight." The firm views Palantir as a compelling AI investment.
Currently, Palantir's 12-month forward price-to-earnings ratio stands at 160.93, compared to Snowflake's 181.89 and Datadog's 67.46.