Goldman Sachs Upgrades Palantir Stock to Buy on Sovereign AI Demand
Key Stats for Palantir Stock
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Price change for Palantir stock in the last 6 months: 52%
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$PLTR Stock Price as of Oct. 8: $199
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52-Week High: $208
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$PLTR Stock Price Target: $203
What Happened?
Palantir (PLTR:NASDAQ) rose about 2% on Thursday after Goldman Sachs upgraded the stock. Goldman moved its rating from Neutral to Buy and set a 12-month price target of $230.
Goldman analysts said that Palantir stock is setting up for another phase of outperformance into 2027. They think the company’s market could grow much larger.
They cited the shift to sovereign AI, custom applications, and Palantir’s newer industry-focused strategy.
Goldman also praised how Palantir’s field engineers work with its product team. The firm says Palantir “perfected” that feedback loop.
Microsoft, Salesforce and Snowflake are hiring field teams too. Goldman thinks Palantir has a head start in using AI agents to scale this work.
Dan Ives added to the good mood. He named Palantir one of his top five tech picks for 2027.
He said investors are underestimating a $4 trillion spending wave.
What the Market Is Telling Us About Palantir Stock
The upgrade lands right after a very strong quarter. In Q2, revenue grew 93%, the company’s fastest pace ever. U.S. revenue jumped 115%. U.S. commercial revenue grew 149%.
Profits are strong too. Palantir made $1.22 billion in adjusted free cash flow. That is a 63% margin. GAAP net income was $1.062 billion.
Sovereign AI is the big theme on the earnings call. Management says companies want to own their data, their logic, and their AI models.
They don’t want to hand it all to outside AI labs. U.S. commercial deals hit a record $2.132 billion in the quarter.
Palantir also raised its full-year revenue guidance to about $8.154 billion. That is 82% growth. For Q3, it expects revenue of $2.16 billion to $2.164 billion.
Palantir stock is also close to its record high.
That means much of the good news may already be priced in. Anyone watching Palantir stock should keep that in mind. Expenses are also expected to jump in Q3 because of seasonal hiring.
Still, Goldman and Ives both see more room to run. For now, Palantir stock is trading on whether sovereign AI demand keeps showing up in the numbers.
So what is Palantir stock actually worth?
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