PLTR Stocks: Is Palantir Among the Best AI Stocks? One Analyst Says Buyers Beware

AI For Business

somehow Palantir Technologies Whether (PLTR) can extend the power of artificial intelligence into new commercial markets is a big question for bulls and bears. At this point, it’s too early to see PLTR stock as one of the best AI stocks, said one analyst.

“ChatGPT’s launch has generated tremendous interest in AI software and its applications,” CFRA Research analyst Janice Quek said in a note to clients Tuesday.

“As a strong market player, PLTR is well-positioned to benefit from its investment in the AI ​​software platform market,” she said. , its recent performance is concerning.”

Palantir is one of many AI stocks to watch. one of them, (AI) plummeted Tuesday on short-selling reports. Meanwhile, PLTR’s stock is up 30% this year. In 2022, the stock is down nearly 65% ​​of his.

Palantir also captures nearly 60% of revenue from government agencies. They use his Palantir software for intelligence gathering, counterterrorism and military purposes. This makes it a narrower market than some of its competitors.

AI Stocks: Battlefield Opportunities

Meanwhile, Bank of America maintains a buy rating on PLTR shares.

In a February 28 report, BofA analyst Mariana Mora said:

Mora adds: “According to CEO Alexander Karp, the most relevant opportunities for AI are on the battlefield. One such example he has is the company’s Skykit tactical C2 system, which allows operators to obtain data can be aggregated and analyzed in a timely and actionable manner.”

Founded in 2003, Palantir’s government work preceded the recent AI buzz. His OpenAI startup launched his ChatGPT in late November.

Generative AI technology is already being applied in many fields. They include marketing, advertising, drug development, legal contracts, video games, customer support, and digital arts.

As such, Palantir aims to grow its commercial business by expanding into healthcare, energy, automotive and manufacturing sectors.

PLTR Stocks: The Growth Of The AI ​​Software Market

CFRA Research cited market research firm IDC’s AI growth forecast. IDC predicts that the AI ​​software platform market will grow from $19 billion in 2022 to $47 billion in 2026.

“While we are optimistic about PLTR’s AI opportunity, recent performance has put us on hold in recommending a purchase,” CFRA’s Quek added. “Revenue growth is decelerating sharply from rocky results and small deal sizes in the government sector.”

But BofA sees it differently.

“Despite some controversy regarding PLTR’s use of its software over privacy rights, the company has historically focused on the responsible use of AI,” Mora said.

She said, “The increasing availability of AI-powered solutions in commercial and civilian applications has raised concerns about security and transparency. Regulatory, accountability requirements should be built in. Palantir’s solution is uniquely positioned as its ontology is already designed to accommodate these requirements.”

Meanwhile, PLTR stock bulls and bears are considering renewing a large US government contract. Palantir’s business in Japan is also a new factor.

Follow Reinhard Krause on Twitter @reinhardtk_tech See the latest in 5G wireless, artificial intelligence, cybersecurity and cloud computing.

You’ll probably also like: drops 25% in letter to auditors at Kerrisdale Capital

IBD Digital: Unlock IBD’s premium stock listings, tools and analytics

Learn how to time the market with IBD’s ETF Market Strategy

IBD Live: A New Tool for Daily Stock Market Analysis

Want a quick profit without big losses? Try SwingTrader

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *