One of the promising players in the field of artificial intelligence (AI) is Palantir (NYSE:PLTR). The company has long been seen as a consultant to the U.S. government and its Western allies because of its close ties to the military.
However, over the last year, Palantir has become a pioneer in the AI revolution. This is largely due to early applause following the release of its fourth major product: the Palantir artificial intelligence platform (AIP). AIP’s success is helping to change the conversation around Palantir, and more Wall Street figures are starting to sound the alarm about the company’s software.
Dan Ives of Wedbush Securities recently took to social media to proclaim that Palantir AIP is the “launching pad for AI use cases.” Its latest research report sets a $35 price target for Palantir stock, implying a 36% upside as of market close on March 11.
Let’s take a look at how Palantir is winning over its customers and how its software is increasingly being deployed in the AI space.
How Palantir wins in AI
Following the release of AIP last April, Palantir began taking a rather unique approach to bringing the product to market. The company has begun hosting immersive seminars called “boot camps” where potential customers can test and demo Palantir’s various platforms and identify how its software can play a role in their AI ambitions.
This lead generation This strategy has proven effective so far. In 2023, Palantir hosted more than 500 boot camps and increased its customer base by 35%. The rapid adoption of AIP and its role in converting prospects into paying customers has helped fuel margin expansion and generate consistent cash flow for Palantir.
In an environment densely populated with deep-pocketed competitors such as Microsoft And AmazonPalantir shows no signs of slowing down.
Use cases are exploding
Last week, Palantir hosted AIP Con 3. During this event, new customers joined Palantir’s executive leadership and demonstrated how its software is used.
Here are some of the use cases featured for Palantir across businesses across many different industries:
Lennar uses Palantir to help streamline its land development bidding process.
General mills relies on Palantir for its logistics and supply chain efforts.
Favorite Cathie Wood Archer Aviation uses Palantir to facilitate maintenance and flight routing protocols.
Lowes deploys Palantir to help with work queue management and agent satisfaction.
Should you invest in Palantir stock?
Given its breakout performance in 2023, investors have rewarded Palantir stock, and shares have surged 167% in the past year. So far this year, the euphoria surrounding the global AI narrative has helped propel Palantir’s stock another 45%.
Unsurprisingly, this buying activity has widened Palantir’s valuation multiples. As such, shares are trading at a notable level premium compared to other Software as a Service (SaaS) peers.
Palantir is moving at a rapid pace as it seeks to outsmart big tech. Additionally, with $3.7 billion in cash and no debt on the balance sheet, combined with consistent profits, Palantir is in a strong financial position compared to many other cash-burning software developers.
What makes the list of use cases above so encouraging is the variety of applications Palantir represents. Companies of different sizes and across all sectors are using this technology.
Now, as boot camps accelerate the conversion of prospects into paying customers, Palantir has a first-mover advantage with all these new accounts when it comes to their AI roadmaps. This provides the company with a lucrative opportunity to work alongside its customers and help identify new use cases and grow within the organization over time.
This dynamic validates Ives’ position. AIP simply serves as a launching pad as Palantir continues to enter the market to attract new customers and expand within its existing base. Despite the stock’s recent rally, I think now is as good a time as ever to use cost averaging and acquire some shares of Palantir.
Should you invest $1,000 in Palantir Technologies right now?
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adam Spatacco holds positions at Amazon, Microsoft and Palantir Technologies. The Motley Fool ranks and recommends Amazon, Lennar, Microsoft and Palantir Technologies. The Motley Fool recommends Lowe’s Companies and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Dan Ives just called Palantir the “launching pad for AI use cases.” Here’s what that means. was originally published by The Motley Fool
