Palantir is set to report first-quarter results after the market close on Monday, May 4, with Wall Street watching whether the AI software darling can keep justifying one of the market's richest growth stories.

‘Another Robust Quarter’

Wedbush analyst Dan Ives is staying firmly bullish into the print, maintaining an Outperform rating and $230 price target on Palantir. 

In a Wednesday note, Ives said he expects "another robust quarter" driven by expanding use cases for the company's Artificial Intelligence Platform, or AIP, across both government and commercial customers.

"We continue to believe Palantir has the potential to be a trillion-dollar market cap company in the next few years as the AI Revolution takes hold and the company sees accelerating demand for its AI products and services," Ives wrote.

The Street is looking for roughly $1.54 billion in first-quarter revenue, according to Wedbush, but Ives called that estimate "beatable." 

He said U.S. commercial revenue could accelerate beyond the 139% year-over-year growth seen last quarter as AIP adoption continues to broaden.

Private Enterprise and Government Business

Palantir has become one of the most closely watched AI stocks on Wall Street, with bulls arguing the company is turning its long-running government software expertise into a broader enterprise AI opportunity. 

Ives said recent field checks point to "unprecedented demand" for AIP, with customers using Palantir's tools to solve enterprise-scale problems and expand existing deployments.

The analyst also highlighted momentum in Palantir's federal business, calling the company increasingly viewed as "defense tech required." 

Wedbush pointed to multiple nine-figure government contracts, including a recently announced $300 million agreement with the U.S. Department of Agriculture tied to farmland asset management and supply-chain risk.

Another potential opportunity: the FAA. Ives noted Palantir is vying for a role in modernizing air traffic control systems, a market that could expand as the agency receives billions in funding to overhaul legacy infrastructure.

The Takeaway

Still, expectations are high. Palantir shares were trading at $136.91, with a market cap above $342 billion and a 52-week range of $105.32 to $207.52. 

That leaves little room for disappointment if growth, margins or guidance fail to impress.

For now, Ives remains convinced Palantir is early in its AI monetization curve, saying the company has a "golden path" to become the next major software stalwart and could eventually grow into its valuation as demand for AI products accelerates.

PLTR Price Action: Palantir stock closed down 2.27% at $137.97 on Wednesday.