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Over the past few months, one tech stock has consistently outperformed its larger peers, demonstrating strong resilience in a highly unstable market.
Palantir Technologies (PLTR) has emerged as one of the year’s undeniable breakout stocks, with year-to-date (YTD) gains of almost 60%. While many prominent tech stocks have struggled recently, primarily due to rising uncertainty from President Donald Trump’s tariffs, PLTR has trended upward and made notable progress.
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Originally a data analytics and enterprise software company, Palantir has successfully ventured into other high-growth markets, such as cybersecurity services and providing defense contracting technology to the U.S. military. Through it all, though, Wall Street analysts have remained mixed on the stock, despite its recent growth.
However, one financial institution recently increased its PLTR stock price target significantly, marking a historic milestone for the company.
Bank of America sees big things ahead for Palantir
While many tech stocks kicked off this week by surging, Palantir stock displayed only modest growth yesterday. The U.S. and Chinese governments announced a 90-day pause on the tariffs they have levied against each other, and markets have reacted extremely well to the news.
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Palantir did close out yesterday in the green, although it dipped slightly in after-hours trading. All the same, investors have cause for optimism, given the significant price target increase that PLTR stock received from Bank of America, its highest one so far.
The Wall Street bank reiterated a Buy rating for Palantir and raised its forecast from $125 per share to $150, implying upside of 27%. Analyst Mariana Perez Mora released a note to investors, laying out her team’s bullish take on the breakout AI stock.
“While there’s some value for general tools, we continue to remind investors Palantir’s value is creating outcome-focused bespoke AI-enabled products, at scale,” she stated. “We see PLTR as the market definer for organizations leveraging AI to drive accelerated tangible results.”
Additionally, she pointed to Palantir’s recent earnings report as proof that the company is able to deploy products quickly and increase its customer base. Her prediction is even more bullish than that of Wedbush analyst Daniel Ives, who recently increased his from $120 to $140, implying 18% upside potential.
Palantir celebrated another important milestone last week when it joined the list of the U.S.’s top 10 most valuable tech companies by market capitalization, blowing past leading software company Salesforce. This puts it in the same elite category as market leaders such as Microsoft, Apple, and Nvidia.