Palantir Technologies, the data analytics company, has raised its annual revenue target as it looks to capitalize on the commercialization of artificial intelligence (AI). However, analysts’ opinions on the company’s AI capabilities are divided.
CEO Alex Karp stated that Palantir’s goal is to profit from AI rather than solely produce tools for computer-generated poetry, differentiating itself from other companies that have restricted the use of similar tools. Palantir’s artificial intelligence platform, called AIP, is designed to enable businesses, as well as defense and military organizations, to leverage large language models and AI for decision-making.
While some analysts are optimistic about Palantir’s AI ambitions, others remain skeptical. Dan Ives of Wedbush Securities praised Palantir as “probably the best pure play AI name” with extensive monetization opportunities. Ives also highlighted Palantir’s recent $463 million contract with the U.S. Special Operations Command as an indication of its potential success.
On the other hand, Rishi Jaluria of RBC Capital Markets expressed doubt about Palantir’s generative AI capabilities. Jaluria argued that Palantir’s AI offerings do not appear to be differentiated from its existing services and technology, stating that the company may not be positioned as a leader in generative AI.
Despite the mixed opinions, Wedbush Securities maintained an outperform rating and a price target of $25, indicating a potential upside of 39% from Palantir’s Monday closing price of $17.99. In contrast, RBC Capital Markets, which holds an underperform rating on the stock, set a price target of $5, suggesting a downside of about 72%.
While Palantir engages with over 300 enterprises for deploying AIP, the debate on its AI capabilities continues. Analysts emphasize the importance of Palantir’s ability to secure new customers and demonstrate actual business growth to prove its worth in the AI market.