TLDR
- Palantir stock rose 1.9% to $159.01 after positive customer feedback at AIPCon conference from companies like American Airlines, BP, and Novartis
- BofA Securities maintained Buy rating with $180 price target, citing competitive advantage in AI solutions
- UBS analysts noted strong growth potential but kept Neutral rating due to high valuation at 200x projected earnings
- Oracle’s $455 billion AI backlog announcement boosted Palantir as a software partner on Oracle’s cloud platform
- Palantir’s partnership with Oracle positions it to benefit from enterprise AI infrastructure spending boom
Palantir Technologies stock climbed 1.9% to $159.01 on Tuesday, marking its second consecutive day of gains. The data analytics company recovered from August losses to trade above its month-start levels.
The rally followed positive research notes from two Wall Street firms after Palantir’s Artificial Intelligence Platform Conference on Monday. BofA Securities analyst Mariana Pérez Mora maintained a Buy rating with a $180 price target for the stock.
Customer testimonials at AIPCon drove much of the optimism. American Airlines Group, BP, and Novartis all praised Palantir’s “Ontology” architecture for creating operational efficiencies.
The platform helps companies connect data across their operations. Pérez Mora noted that many enterprises struggle to extract value from AI investments, but Palantir customers remain an exception.
BofA argued that the company’s ability to streamline operations translates into client expansion opportunities. This positions Palantir for growth even in challenging economic conditions.
UBS analysts echoed similar customer feedback across government and commercial segments. Analyst Karl Keirstead said CEO Alex Karp’s prediction of tenfold growth in U.S. commercial business over five years appears realistic.
However, UBS maintained a Neutral rating with a $165 price target. Keirstead cited the stock’s high valuation at over 200 times projected 12-month earnings as a concern.
Oracle Partnership Creates Growth Catalyst
Oracle’s fiscal first-quarter earnings revealed a massive $455 billion backlog for cloud and AI servers. This tripled from the prior quarter, showing strong enterprise demand for AI infrastructure.
Palantir benefits from its partnership with Oracle’s cloud platform. The companies signed a deal last year to deliver Palantir’s AI software through Oracle’s infrastructure.
This positioning allows Palantir to tap into Oracle’s expanding customer base. As Oracle scales its AI server business, it needs software partners that demonstrate practical AI applications.
Palantir’s track record spans multiple industries from airlines to defense contractors. The Oracle partnership could expose the company to new clients beyond its traditional reach.
Stock Performance Reflects AI Market Momentum
Palantir stock gained over 3% on Wednesday following Oracle’s earnings announcement. The broader AI trade lifted after Oracle’s strong backlog numbers.
The stock experienced volatility this year, surging earlier before losing momentum in August. Current levels represent a recovery to month-start positions.
Wall Street analysts remain divided on the stock’s valuation. Five analysts recommend buying, 13 suggest holding, and two rate it a sell based on recent reviews.
Bank of America argues that Palantir’s real-world customer adoption separates it from AI companies with more hype than results. The Oracle partnership strengthens this competitive position as enterprise AI spending accelerates.
UBS expects customers to continue pouring billions into AI servers and data platforms. This creates growing demand for software that can organize and analyze the resulting data streams.
