- Wedbush analyst Dan Ives said Palantir stock is the top undervalued AI stock on Wall Street.
- Ives pointed to deals with government agencies and corporations to support his bullish forecast of $50 per share by 2025.
- Palantir has risen 64% this year, outpacing the software industry's 15% gain.
Palantir Technologies is a leading AI company whose stock could soar to $50 a share next year, according to Wedbush Securities.
Analyst Dan Ives said in a note published Thursday that the data company's shares could soar to $50 a share in 2025. A rise of that magnitude would represent a 67% increase from Thursday's intraday high of $29.80.
Ives pointed to strong demand for Palantir's AI-driven data and analytics tools from government agencies and private companies as supporting his bullish outlook for next year.
“The company is seeing strong demand from both commercial and government organizations as more customers realize the operational benefits of its PLTR technology, driving efficiencies from accelerating their AI strategies beyond chat,” Ives wrote.
But Ives added that Palantir “remains vastly undervalued and misunderstood by the market.”
His optimism for the company stems from strong sales of its AIP Logic platform and a trend of customers buying Palantir's entire suite of technology products, a trend that will continue as organizations realize the need for AI across a range of sectors.
Ives also spoke about Palantir's differentiated bootcamp strategy, which teaches companies how to use AI to optimize their operations.
Ives said some organizations have already signed multi-year, multi-million dollar contracts within days. He gave the example of a utility company that signed a seven-figure contract just days after completing Palantir's bootcamp. In the past three months, users have completed more than 500 bootcamps.
Palantir has also had great success with government organizations: The U.S. Army recently awarded a $480 million contract to use the company's Maven data analytics prototype.
PLTR is up 64% this year, outpacing the overall software industry's 15% gain, and Ives sees Palantir's success only growing as enterprise AI spending, projected to reach $1 trillion, penetrates the market.
