Palantir Technologies (PLTR) has been one of the standout performers in the artificial intelligence (AI) stock rally, with shares demonstrating a meteoric rise. As investor enthusiasm around its Artificial Intelligence Platform (AIP) continues to grow, some on Wall Street — like Wedbush analyst Daniel Ives — believe PLTR stock could climb even higher. Ives recently set a bold price target of $160 on Palantir stock. 

Palantir has been riding high, fueled by rapid expansion in both its government and commercial segments and staking its claim as a cornerstone of enterprise AI. That momentum pushed the stock to an all-time high of $151.51 this month, capturing Wall Street’s attention. Still, PLTR stock’s lofty valuation continues to spark debate, with bullish sentiment appearing to be running ahead of the company’s near-term financial metrics.

So, will the company's AI-fueled momentum justify the Street’s optimism and power through to Ives’ ambitious $160 Street-high mark? Or is PLTR stock simply sprinting past what its fundamentals can support?

About Palantir Stock

Palantir Technologies is a public software company specializing in big‑data analytics and AI platforms (including Gotham, Foundry, Apollo, and AIP) for both government and enterprise clients. The company earned early backing from the CIA’s venture arm, In‑Q‑Tel, and has since evolved into a major provider of mission-critical data tools for federal agencies and commercial organizations alike. It currently boasts a market capitalization of $350 billion.

PLTR stock has surged dramatically, up 99% year-to-date (YTD) and rising 426% over the past 52 weeks on the back of rapid growth in its AI-powered platforms, deepening expansion across both government and commercial sectors, and bullish analyst price targets. In fact, so far this year, Palantir is the top performer of the S&P 500 Index ($SPX).

While Palantir’s AI momentum is undeniable and the stock surge is impressive, its sky-high valuation raises eyebrows. Priced at 408 times forward adjusted earnings and 123 times sales, PLTR stock trades higher than many AI peers and major tech players. 

Palantir’s Q1 Results Exceed Projections

Palantir delivered a powerful first-quarter 2025 report on May 5, with revenue soaring 39% year-over-year (YOY) to $884 million, comfortably surpassing analysts’ expectations. Domestic growth was a standout, with U.S. revenue growing 55% annually to $628 million. Within that segment, U.S. commercial revenue surged 71% while government revenue climbed 45% YOY.

Profitability metrics were equally impressive. Adjusted net income hit $334.4 million, up 70% YOY, while adjusted EPS increased more than 62% to $0.13, topping the estimates. Plus, the company exited the quarter with $370.4 million in adjusted free cash flow — more than double last year’s figure — reflecting a strong 42% margin and marked improvement in operational efficiency and YOY cash generation.

These standout figures gave Palantir confidence to raise its full-year revenue guidance to the range of $3.89 billion to $3.902 billion, indicating roughly 36% of top-line growth for fiscal 2025. U.S. commercial revenue growth is expected to be at least 68%. Management also raised its adjusted income from operations guidance, now expected to be between $1.71 billion and $1.72 billion. 

Analysts expect the company’s EPS to climb 362% YOY to $0.37 in fiscal 2025, then rise another 16% to $0.43 in fiscal 2026.

What Do Analysts Expect for Palantir Stock?

Wedbush analyst Dan Ives recently upheld his “Outperform” rating on PLTR stock while raising the price target from $140 to $160. The analyst characterized Palantir as on a “golden path to become the next Oracle,” positioning it as a foundational platform amid a projected trillion‑dollar wave of global AI spend. Despite its currently high valuation, Wedbush views Palantir as a core winner in the AI revolution, with a strong competitive moat and customer momentum.

Still, not everyone is on board. Citi reaffirmed a “Neutral” rating on the stock and maintained a $115 price target. The firm cited optimism around AIP and financial services, but flagged valuation concerns and mixed international momentum, especially in European commercial markets.

PLTR stock has a consensus rating of a “Hold” overall. Of the 20 analysts covering the stock, three advise a “Strong Buy,” 12 suggest a “Hold,” one analyst gives it a “Moderate Sell” rating, and four rate PLTR as a “Strong Sell.”

Palantir is trading at a premium to its average analyst price target of $106.12. However, Wedbush’s Street-high target of $160 signals that the tech stock could still rise as much as 6% from current levels.