The artificial intelligence boom has a standout performer: Palantir Technologies. As the data analytics specialist’s shares closed at $170.69 on Tuesday, a wave of bullish analyst notes continues to propel interest. A series of prominent financial institutions, including Cantor Fitzgerald, HSBC, and Goldman Sachs, have significantly raised their price targets for the company. The consensus is clear: Palantir is already generating billions from AI, leaving many rivals still in the experimental phase. The central debate now is whether this ascent can be sustained or if a sharp correction lies ahead.
A Valuation Conundrum Amidst Unprecedented Growth
There is, however, a significant caveat: valuation. With an estimated forward price-to-earnings ratio ranging between 169 and 183, Palantir is far from inexpensive. Even as profit growth accelerates, the current share price of approximately €147 (€146.86) appears to have already priced in substantial future optimism. Notably, despite these recent upgrades from major firms, the average analyst stance remains cautious. The consensus rating continues to be “Hold,” with the average price target sitting below the current trading level. This underlying skepticism highlights concerns that the stock’s rapid climb may have been too steep.
Wall Street’s Enthusiastic Reassessment
The catalyst for the renewed optimism is Palantir’s explosive third-quarter performance. Revenue surged by 63% to reach $1.18 billion. Even more impressive was the 121% climb in revenue from U.S. commercial customers. Analysts point to this as evidence that Palantir has successfully transitioned from a niche government contractor to a dominant enterprise AI platform. Cantor Fitzgerald now sets the highest bar with a $198 price objective, followed closely by HSBC at $197 and Goldman Sachs at $188. Wedbush’s star analyst Dan Ives remains a long-term bull, famously dubbing Palantir “the Messi of AI” and envisioning a path toward a trillion-dollar valuation.
Should investors sell immediately? Or is it worth buying Palantir?
CEO Alex Karp’s “bootcamp-to-conversion” commercial strategy is proving effective. Companies that trial the AI platform are frequently converting into long-term, paying clients, leading to a rapid expansion of the customer base.
The Fourth Quarter as the Next Crucial Test
All eyes are now on whether Palantir can maintain its triple-digit commercial growth rate. For the final quarter of the year, management has provided revenue guidance of $1.33 billion. From a technical perspective, the stock is currently trading above a key support level of $165, while the intraday high of $175.75 marks the next immediate resistance point. The next major milestone will arrive in February 2026 when Palantir releases its Q4 earnings. Until that report, the equity is likely to oscillate between investor optimism and fears over its elevated altitude.
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