Palantir Technologies (PLTR +1.25%) shares advanced 135% in 2025, delivering double-digit gains for the third consecutive year. The share price has fallen 14% from its record high of $207 in early November, but shareholders recently got great news from Wall Street, suggesting a new peak is right around the corner.
Here are the important details.
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Wall Street analysts who follow Palantir have revised earnings estimates and price targets higher
Tyler Radke at Citigroup upgraded Palantir stock to buy in a note to clients published on Jan. 12. He also raised his target price to $235 per share, up from $210 per share, implying 32% upside from the current share price of $179. Radke mentioned adoption of artificial intelligence (AI) across the public and private sectors as a key catalyst.
Importantly, other Wall Street analysts have also raised their outlooks concerning Palantir. In the last 90 days, earnings estimates for 2026 have increased 19% and the average target price has increased 23% to $188 per share, according to LSEG. Wedbush analyst Dan Ives even selected Palantir as one of his top stock picks for 2026, saying it has a "golden path" to become a trillion-dollar company.
Previously, Mariana Perez Mora at Bank of America reiterated her Street-high target price of $255 per share in December. "We continue to see PLTR unmatched in their ability to rapidly achieve in-production solutions and provide human-machine teams with the ability to make the most informed decisions," she wrote in a note to clients.
Similarly, Sanjit Singh at Morgan Stanley raised his target price to $205 per share, up from $155 per share, in November, after the company delivered strong third-quarter financial results and management gave robust guidance. Palantir is "emerging as the enterprise AI standard," according to Singh. "It is hard to find a better fundamental story in software."
Independent research organizations have recognized Palantir as a leader in artificial intelligence software
Commentary from sell-side analysts, like those discussed in the previous section, can be useful, but investors should also consider reports from third-party research organizations. They provide objective insight into a company's products and market position, which can be useful in making investment decisions.
In 2024, Forrester Research recognized Palantir as a leader in artificial intelligence platforms, saying the company had quietly become one of the largest players in the market. In 2025, Forrester ranked Palantir as a leader in AI decisioning platforms, praising the company for its capabilities, overall strategy, and positive customer feedback.
Similarly, the International Data Corporation (IDC) in 2024 recognized the company as a leader in decision intelligence software, scoring it above every other vendor in current capabilities and growth strategy. More recently, IDC ranked Palantir as a leader in AI-enabled source-to-pay software, which is vital in procuring raw materials and managing supply chains.
NASDAQ: PLTR
Key Data Points
Palantir stock trades at an absurdly expensive valuation
Palantir's status as a leader in AI platforms and several AI-adjacent markets may translate into strong revenue for years to come. But the current valuation of 109 times sales is still very hard to justify. The next closest stock in the S&P 500 is AppLovin at 40 times sales. That means Palantir could fall about 63% and still be the most expensive stock in the index.
However, some analysts aren't overly concerned about the current price tag. Tyler Radke at Citigroup says Palantir has "broken" the rules where valuation is concerned and he thinks that will continue. Wedbush's Ives says Palantir will "grow into its valuation" as the AI boom continues to unfold.
Personally, I think risk-averse investors should avoid Palantir, and risk-tolerant investors should limit exposure to a small percentage of their portfolios. I say that as a shareholder myself. Palantir is an excellent business, but the absurdly expensive valuation means the stock is predisposed to massive declines under the right conditions, such as a drawdown in the broader market or disappointing results in a future earnings report.
