DA Davidson upgraded Palantir Technologies (PLTR) stock to 'Buy' from 'Neutral' premarket on Thursday and raised its price target to $175 from $165, representing a 39% upside potential to Wednesday's close. The firm cited Palantir's significant profit growth and argued the company has 'grown into its valuation.' DA Davidson highlighted Palantir's competitive positioning in the AI software sector, stating customers will use the platform 'as a way to orchestrate AI models' and noting the company's ability to swap AI models beneath solutions reduces the threat from competitors like Anthropic and OpenAI. At the time of writing, PLTR stock was up over 3% premarket on Thursday.
DA Davidson Cites Profit Growth and AI Orchestration Advantage
DA Davidson stated that Palantir has 'grown into its valuation' as profits have risen significantly. The firm argued the company holds competitive advantages over other software firms entering the AI space. DA Davidson noted that Palantir has developed its platform so customers will use it 'as a way to orchestrate AI models.' The analyst highlighted Palantir's capability to swap AI models beneath solutions, which removes the perceived threat that customers would turn to Anthropic and OpenAI to solve their biggest issues. Of 32 analysts tracked on Koyfin, 20 rate the stock 'Buy' or higher, ten recommend 'Hold', and two recommend 'Sell' or higher.
CEO Karp Criticizes OpenAI and Anthropic IP Protection Measures
On Wednesday, CEO Alex Karp lauded Palantir's latest partnership with NVIDIA Corp. (NVDA) to provide secure AI offerings to U.S. government bodies, enterprises, and allies. In a CNBC interview, Karp argued that frontier AI model developers OpenAI and Anthropic lack measures that safeguard clients' intellectual property. "The basic view of enterprises in this country... I'm going to basically chillax and waste my time with tokens, I'm going to get no value and they're going to get my IP," Karp stated.
Palantir Integrates Nvidia Nemotron Models for U.S. Government AI
Earlier this week, Palantir announced a deal with Nvidia to integrate Nvidia's Nemotron open AI models into its new intelligent engine. The partnership provides mission-specific sovereign AI for the U.S. government and critical infrastructure operators. The firm noted its platform ensures government agencies retain ownership of resulting model weights, customize data on Nemotron models, and improve performance with feedback through their own infrastructure. Retail sentiment surrounding the stock remained 'bullish' with 'high' message volumes on Stocktwits over the past 24 hours. PLTR stock has declined more than 25% so far this year.
FAQ
What did DA Davidson announce about Palantir Stocks on Thursday?
DA Davidson upgraded Palantir Technologies (PLTR) stock to 'Buy' from 'Neutral' premarket on Thursday and raised its price target to $175 from $165, representing a 39% upside potential to Wednesday's close.
Why did DA Davidson upgrade Palantir Stocks?
DA Davidson cited Palantir's significant profit growth and argued the company has 'grown into its valuation.' The firm highlighted Palantir's competitive positioning in AI, noting customers will use the platform 'as a way to orchestrate AI models' and the company's ability to swap AI models beneath solutions reduces competitive threats from Anthropic and OpenAI.
What did Palantir announce in its partnership with Nvidia?
Earlier this week, Palantir announced a deal with Nvidia to integrate Nvidia's Nemotron open AI models into its new intelligent engine to provide mission-specific sovereign AI for the U.S. government and critical infrastructure operators, with government agencies retaining ownership of resulting model weights.
