Home / Business and Economy / Palantir Stock: Wall Street Sees New AI Boom Ahead
Palantir Stock: Wall Street Sees New AI Boom Ahead
12 Oct
Summary
- Palantir's revenue surged 93% year-over-year to $1.94 billion in fiscal 2026.
- Goldman Sachs upgraded Palantir to 'Buy' with a $230 price target.
- New AI applications in finance, chips, and neoclouds signal growth.
Palantir Technologies Inc. reported strong second-quarter fiscal 2026 results, with revenue reaching $1.94 billion, a significant 93% increase from the previous year. Notably, U.S. commercial revenue saw a remarkable 149% jump to $764 million. This growth has led Goldman Sachs to upgrade the company's stock from Neutral to Buy, setting a 12-month price target of $230.
Goldman Sachs believes Palantir's market opportunity is deepening, particularly with the next wave of AI adoption focusing on unique business applications, termed 'Sovereign AI' by CEO Alex Karp. New verticals like finance, with the addition of former AIG CEO Peter Zaffino leading financial services growth, the chips industry through a partnership with Nvidia, and neoclouds with Nebius naming Palantir a preferred sovereign AI infrastructure provider, illustrate this shift.
The company's unique forward-deployed engineer (FDE) model, which embeds engineers within client companies, is also cited as a key strength. This model fosters tight feedback loops between field operations and product development, with AI now automating parts of this process. Goldman Sachs acknowledges potential risks, including competitors replicating the FDE approach and slower enterprise AI adoption, but maintains a positive outlook.
Government contracts also contribute to Palantir's trajectory, with the TITAN program for the Army entering production and Maven becoming a Program of Record. Foundry serves as the cloud data layer for Next Generation Command and Control systems, underscoring its critical role in defense operations.
