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Wedbush out with a new bullish call for Palantir, raising its bull case price target on the stock to $50 for 2025. Notes saying that the Messi of AI is in a prime spot for the AI revolution. For more, we are now bringing in the analyst behind that note, Dan Ives, Senior Equity analyst at Wedbush. Dan, it is good to see you. So this note Dan, um, you maintain the outperform. The target's 35, but the new bull case is 50 for 2025. Walk us through that note Dan. How come?

Yeah, Josh. The AI revolution's here. And when I look at the next step, the use cases, Palantir, I think is going to really be the one that's front and center in a lot of these deals. And we're seeing that through a lot of these cloud channels, a lot of the work we're doing boot camps. Investors, look, if you've seen they're negative at six. They hated at 12, despise it at 18, and screaming at 25. And I think this is a stock that has a massive move ahead of it given where the AI revolution's heading. That's why it's the Messi of AI.

Um, I was curious, Dan, reading your note, um, what had changed or what different information that you had to take you to that bull case? Because it it looks similar to the case that you have made before for the stock. So was there more data that you were gathering to get you to 50 here?

Yeah, Julie. It's just in the almost 100 customers that we've spoke with, the conviction level's increasing. I think deals accelerating. And I think what we're seeing on AIP conversion is even stronger than we expected. Now does that mean for this quarter or for next quarter? But when I look out the next six, 12 months on Palantir, I think this is going to be a golden child of AI. And right now, I mean, institutionally speaking, it's very negative because I think many don't understand or appreciate the true, what I view is the competitive moat that Car Palantir built.

What are you know, it was interesting, uh, Dan. I was talking, uh, not too long ago with Brent Thill over at uh, Jeffries and covers Palantir. And he, you know, he was encouraged by what he saw in Palantir's business and fundamentals, but he he was staying on the sidelines and it was a valuation call. He just thought it looked pricey, but you you don't share those concerns here.

Look, Josh, I get the valuation argument. But it's very similar to how I view Microsoft and Apple and Tesla and so many other names that you have to view this as sum of the parts. You got to view it on, what's the commercial business worth? What is AIP going to drive? And then put some multiple in the government business. And I think when you start to put those together, I mean, you could start, I mean, 35 is our base case, but then you start to get to the bull case of 50 hours into next year as this goes to second, third, fourth derivative. And I don't know how you could have a basket of AI stocks and just dismiss Palantir. I mean, that that's sort of our view, and that's been our conversations with investors, even though it's a very contentious name.

Um, Dan, I'm sure you're aware of some of the chatter. You kind of referred to it. That's out there lately. There is some skepticism creeping out there on AI. Um, Edison Lee over at Jeffries just writing today, uh, that what we're seeing right now in tech in terms of sell-off isn't actually about geopolitics. It's not actually about concern over China and Taiwan. It's actually about concern over AI's return on investment. Um, I know you don't agree with that clearly, but you know, are people, what do you think that's about? Is it just that people are getting impatient here? What do you think? Or do you think that they have a point?

I mean, look, this sell off, I can tell you from all my conversations last 48 hours, it's the Trump Taiwan China word. Right? I mean, those comments, obviously we'll speak tonight, you know, and then you factor in what potential Trump second term. What does that mean in terms of the AI trade? So I think that's this sell off. But Julie, I think when me and and Josh talk in the next few weeks and Josh's wearing his pink sports jacket, I think we're going to have a massive tech earnings season for tech, for semis, for software that changes the narrative. But I always say, I mean, you can see AI on your spreadsheets or in the 10th floor of your New York City office building. And I think that's why we, you know, we spend so much time around the globe and there's no denying this AI revolution is probably the biggest tech trend we've seen the last 40, 50 years.

Switching gears here, Dan. Another name you cover. I want to get your your take on Apple because we did have, you know, well-known analyst Ming-Chi Kuo, um, was writing today that there's been these rumors of increased orders for iPhone 16 from time to time, but, uh, looking at recent earnings calls from some Apple suppliers saying, you know, hinting that the iPhone 16 orders may not have increased. Where where are you on Apple as we head into that earnings print as well, Dan?

Josh, many yell fire in a crowded theater on Apple, you know, at 160, 170. So I get it. 230, you know, people are going to double down those calls. I mean, all of our checks show rising demand for iPhone 16. The AI story is coming to Cupertino. I think a lot of investors have been caught off sides on this one. And I think a year from now, we have a $4 trillion market cap. But again, I get the skepticism. Lot of haters in Apple at 150, 160, and at 230 they they really hate it.

Dan, good to see you. We'll we'll rejoin you soon with the pink jacket on uh, on my esteemed co-anchor.

I could see Ripton wearing that pink or purple sports shirt.

No, no. I want that shirt, Dan. I want that shirt. That's what I want for Apple days. That's I know I can count on you.

I'm bringing it. I'm bringing it to you in June.

I'm so excited about this. Thank you, Dan.

Thanks.