Proactive Investors - Palantir Technologies Inc (NYSE:PLTR) saw glowing feedback from Wedbush after reporting strong results on Monday thanks to demand for its artificial intelligence (AI)-powered products.
Analysts lifted the big data software company’s price target from US$25 to US$30 following the trading update, which saw boss Alex Karp describe demand for commercial large language models as “unrelenting” in the US.
Indeed, the wider market also reacted well, with Palantir shares climbing 25% to US$20.83 on Tuesday.
Labelling Palantir alongside the likes of Nvidia, Microsoft (NASDAQ:MSFT) and Palo Alto Networks, analysts at Wedbush said the firm had found itself in a rare "sweet spot” for future growth.
“Last night for Palantir was when this company went from an off-Broadway play to a primetime Broadway theater right off of Times Square (NYSE:SQ) under the bright lights,” Wedbush wrote in a note.
Palantir had reported a 20% jump in fourth-quarter revenue to $608 million, which came in ahead of estimates of $603.5 million.
Within this, commercial revenue in the US grew by 70% as Palantir said it was entirely focused on rolling out its AI platform, with the figure sitting at 32% globally.
Wedbush said adoption of such products from Palantir had begun happening at rates not expected until 2025, which the bank attributed to the “AI revolution”.
The bank tipped free cash flow to hit US$1 billion in 2024 as a result, adding this was “just the beginning” and that inclusion in the S&P 500 was “on the near-term horizon”.
“In a nutshell, Palantir remains an undiscovered gem and a core part of our thesis in the AI revolution just now taking shape across the tech world,” analysts added.