On February 4, Palantir shares surged over 18% in premarket trading driven by robust demand for its software and data analytics services, as businesses rushed to adopt generative AI technology. The company is poised to increase its market capitalization by approximately $35 billion, with current share prices at $99.31.
Russ Mould, Investment Director at AJ Bell, noted, It's yet another company riding the AI wave, benefiting from industries investing heavily to enhance their technological capabilities.
Founded by tech mogul Peter Thiel, Palantir's AIP platform, utilized for testing and evaluating AI scenarios, has seen traction from businesses seeking to implement generative AI.
Describing Palantir as the "Michael Jordan of AI stocks," Matt Britzman, Senior Equity Analyst at Hargreaves Lansdown, highlighted its appeal to investors and its ability to deliver impactful results.
Addressing clients' use of DeepSeek's AI models, Palantir's Chief Revenue Officer, Ryan Taylor, expressed caution but affirmed continued collaboration with clients' choices.
Following considerations by U.S. officials on DeepSeek's implications, Taylor also mentioned the potential boost in demand for Palantir's analytics services focused on supply chain and logistics management due to President Donald Trump's recent policies.
Several analysts have raised their price targets for Palantir, with Morgan Stanley upgrading the rating to 'equalweight' from 'underweight,' labeling Palantir as 'a compelling AI narrative.'
Palantir's 12-month forward price-to-earnings ratio is at 160.93, trailing Snowflake at 181.89 and surpassing Datadog at 67.46.