Why Palantir’s AI-Driven Growth Has Analysts Divided on the Stock

Palantir Technologies (PLTR) shares soared successful intraday trading Tuesday, a time aft nan company's earnings beat, driven by "unbridled demand" for its Artificial Intelligence Platform (AIP).

Shares of Palantir were up over 11% astatine $26.79 arsenic of 3 p.m. ET Tuesday, contributing to nan stock's complete 56% year-to-date gain.

Some analysts lifted their value targets for nan banal based connected nan company's quarterly results. However, others raised concerns astir nan sustainability of caller growth.

Palantir's 'Game Changer Quarter' Leads Some Analysts To Lift Targets

Wedbush analysts lifted their value target for nan banal to $38 from $35, calling Palantir's latest update a "game changer quarter" pinch AIP monetization arsenic a "major maturation driver."

They said Palantir "saw unprecedented request for its AI solutions crossed some commercialized and authorities landscapes by taking AI solutions that lick meaningful problems crossed organizations astatine endeavor scale."

Citi analysts said they "expect shares to waste and acquisition up importantly arsenic nan accelerating gross and magnitude of top-line outperformance are particularly awesome successful a choppy Q2 package request environment."

Others Question nan Sustainability of Growth

Despite what Wedbush analysts called a "prove me" quarter, analysts astatine William Blair were little convinced astir nan company's expertise to prolong its caller growth.

"While beating statement is positive, nan barroom has consistently been group very low," William Blair analysts said, reiterating an "underperform" standing for nan stock.

The analysts said they "do not judge nan company’s U.S. commercialized momentum is sustainable," highlighting that U.S. commercialized gross grew 6% quarter-over-quarter, slowing from nan 14% sequential maturation recorded nan erstwhile quarter. They added that U.S. authorities statement headwinds could besides clasp backmost growth.