Despite recent market volatility triggered by "AI bubble" concerns—with bearish investors comparing it to the dot-com bubble—Palantir Technologies (PLTR.US), a leader in AI-powered data analytics, continues to demonstrate robust fundamentals. According to Bank of America Research, the company shows no signs of slowing growth, as demand for its AI tools accelerates among both enterprises and governments.
Bank of America analysts highlight Palantir’s sustained revenue growth, driven by strong enterprise adoption of its AI software and expanding federal contracts. The stock has surged over 150% in the past year, earning its reputation as a "bull market legend" in AI applications. Analysts, including those at Bank of America, maintain a bullish outlook, with a 12-month price target of $255—the highest on Wall Street. As of Monday’s close, Palantir traded near $183, up over 140% year-to-date, with valuations at historic highs based on forward P/E.
The "Magnificent Seven" tech giants—Apple, Microsoft, Google, Tesla, Nvidia, Amazon, and Meta—have been key drivers of the S&P 500’s rally. However, the AI investment landscape is expanding beyond these players to include broader AI infrastructure and application leaders. For instance, Cboe’s newly launched "Magnificent 10 Index" futures/options now include Broadcom, Palantir, and AMD, signaling market consensus that AI’s beneficiaries extend beyond the original seven.
Palantir’s 2023 launch of its AI Platform (AIP) has gained traction, with over 100 organizations—spanning healthcare and automotive sectors—already deploying it. The platform integrates generative AI into Palantir’s data analytics ecosystem, enabling businesses to leverage AI for decision-making without technical hurdles. Applications range from supply chain optimization to predictive maintenance and threat detection.
The company’s growth is fueled by its expanding AI influence and unique software demand. Its largest clients include the U.S. government and global defense agencies, with projects like the "Warp Speed for Warships" initiative and NATO collaborations serving as key catalysts. These efforts leverage Palantir’s Foundry platform to modernize military operations.
Bank of America underscores Palantir’s unmatched ability to deploy AI solutions rapidly, enabling data-driven decisions. Analyst Mariana Perez Mora notes, "Ontology is critical for integrating AI into workflows. As AI ecosystems evolve, enterprises recognize Palantir’s infrastructure as essential." The bank also highlights Palantir’s recent $448 million two-year contract with the U.S. Navy to deploy Foundry and AIP under the ShipOS program, aimed at streamlining submarine production.
Palantir’s revenue growth—63%, 48%, and 39% YoY over the past three quarters—reflects soaring demand. Bank of America reaffirms its "Buy" rating and $255 target, citing Palantir’s strategic improvements in interoperability, security, and capital-efficient product development.