Palantir's big rally may have room to run.
Bank of America said it believes that stocks in AI companies, loved by retail traders, have more advantages. In particular, growth will be maintained by one secret weapon, AI's future deployment engineers say, referring to Palantir's agent AI technology.
In a note to clients, Bofa repeated its “buy” ratings at Palantir, increasing its stock price target from $180 per share to $215. 23% from the price on Friday around noon.
In particular, Palantir pointed to the AI FDE demonstration at the annual AIPCON 8 conference, saying he met Akshay Krishnaswamy, chief architect of Palantir.
According to Marina Perez Mora, research analyst at Bofa, one of the main points was that FDE is a “significant differentiator” for Palantir, another company in space.
“I posted AIPCON8 to highlight that ontology architecture and FDES's strategy for the market has remained a secret source for Palantia,” writes Mora.
Palantir's agent AI could help drive growth in several ways, Mora said:
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- Increased demand. This technology can affect customers to purchase Palantir's operating system, as opposed to its own construction. This is because companies may be considering “accelerating the implementation of AI agents” in their own operations.
- Increased productivity. “By implementing these breakthrough capabilities within the home, the company will benefit from engineers who can focus on increasing demand, scalability and the most complex issues,” Mora said.
- New use cases. “And also, these AI FDEs allow Palantir engineers and customers themselves to continue creating new use cases,” added Mora.
These trends could help raise Palantir's commercial sales by over $100 billion by the end of 2030, Bank of America estimated. Mora also said that sales could increase by the end of 2026 by 41% year-on-year and could increase by 39% year-on-year in 2027.
“In our view, PLTR deserves a premium rating on short-term traditional indicators. This premium should be considered to promote short-term growth, sustained long-term growth opportunities and strong profitability,” she continued.
It's already a big run for Palantir, with the company's shares increasing by 133% per year. The rally was brought about by the confluence of factors, including strong revenue, a loyal army of retail investors, and its myriad deals.
