Trevor Jennewine, The Motley Fool

Fri, Jun 27, 2025, 3:03 AM5 min read

• Palantir currently has a market value of $335 billion, but Wedbush Securities analyst Dan Ives says it could be a trillion-dollar company within three years.

• Palantir reported strong financial results in the first quarter, notching its seventh straight acceleration in sales growth due to strong demand for its AI platform.

• Palantir currently trades at 114 times sales, a valuation so rich that the shares price could fall 70% and it would still be the most expensive stock in the S&P 500.

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Palantir Technologies (NASDAQ: PLTR) hit its stride when demand for artificial intelligence (AI) exploded after the launch of ChatGPT. The stock has soared 2,100% since January 2023, the best performance in the S&P 500 (SNPINDEX: ^GSPC) during that period by a wide margin.

Today, most Wall Street analysts see the stock as overvalued. The median target price is $110 per share, which implies 23% downside from its current share price of $143. But Dan Ives at Wedbush Securities has consistently gone against the grain and been proved right time and time again:

• In September, Ives raised his target to $45 per share when the Wall Street consensus was $25.

• In November, Ives moved his target to $75 per share when the Wall Street consensus was $28.

• In January, Ives bumped his target to $90 per share when the Wall Street consensus was $41.

Ives last month raised his target price to $140 per share. That implies a little downside in the near term, but he still sees Palantir as one of the best AI stocks investors can own despite the elevated valuation. In fact, he thinks Palantir will be a trillion-dollar company within three years. That forecast implies 199% upside from its current market value of $335 billion.

Here's what investors should know.

The International Data Corp. estimates artificial intelligence (AI) platform spending will increase at 40% annually through 2028. Palantir quickly became one of the largest players in that market following the launch of its AIP product in 2023. AIP adds support for large language models to the company's data operations platforms, Foundry and Gotham, which lets clients apply generative AI to their operations.

Palantir says its key differentiator is an ontology-based software architecture. To elaborate, its products are built around a framework that links digital information to real-world assets. Users can parse that information with machine learning models and other analytical tools to uncover insights and optimize decision-making. And the feedback loop created by the software drives continuous improvements in the system.