Palantir (PLTR) Stock Soars as Wedbush Names It a Top Pick for 2025

Palantir Technologies Inc. (NYSE: PLTR) continues to capture investor attention, with shares surging on Monday following an endorsement from Wedbush analysts. The firm has labeled Palantir as one of its “top names to own in 2025,” driving renewed optimism around the AI-driven data analytics company. As a result, PLTR stock jumped more than 6% in early trading before stabilizing.

Palantir’s Stock Performance: A Rollercoaster Ride

Since the start of 2024, Palantir shares have climbed approximately 15%, maintaining strong momentum despite some recent volatility. Over the past year, PLTR has seen a nearly fourfold increase in value, reflecting robust investor confidence in its long-term potential. However, the stock has also experienced notable pullbacks, particularly after a recent report from The Washington Post suggested potential cuts to the U.S. defense budget.

Pentagon Budget Cuts and Investor Concerns

Palantir faced pressure last month when reports surfaced that the Trump administration had directed the Pentagon to reduce the U.S. defense budget by 8% annually over the next five years. Given that federal contracts contribute over 40% of Palantir’s revenue, investors grew concerned that spending cuts could impact the company’s financial performance. This news triggered a sharp sell-off, with Palantir losing nearly one-third of its value from record highs.

Despite these concerns, Wedbush analysts remain bullish on Palantir’s future, arguing that the company is well-positioned to thrive even amid potential government budget reductions.

Why Wedbush Sees a Bright Future for Palantir

Wedbush analysts have reaffirmed their confidence in Palantir, citing its Artificial Intelligence Platform (AIP) as a key driver of future growth. They believe that despite proposed budget cuts, Palantir’s AI-powered solutions will remain essential to federal agencies seeking efficiency and enhanced decision-making capabilities.

“We believe Palantir could actually gain more deals and IT budget dollars across various government agencies,” the analysts noted, emphasizing the company’s ability to integrate AI-driven solutions into mission-critical government operations.

The firm maintains an “outperform” rating on Palantir, with a price target of $120 per share—a nearly 40% premium compared to Monday’s intraday level of $86.82. This bullish outlook reflects expectations of continued federal spending on AI-driven platforms, even in a cost-cutting environment.

Palantir’s AI Strength: A Competitive Advantage

Palantir has long been recognized for its cutting-edge AI and machine learning capabilities, which provide governments and enterprises with real-time data analytics, predictive insights, and operational efficiencies. Its AIP has gained traction across various industries, including defense, healthcare, finance, and energy, making it a diversified play in the AI space.

Even as traditional government contractors may struggle with spending reductions, Palantir’s focus on AI-driven decision-making tools positions it favorably. The company has already secured multiple long-term contracts with U.S. agencies, indicating its value proposition remains strong.

Beyond Government: Expanding into the Commercial Sector

While government contracts remain a crucial revenue stream, Palantir has also been aggressively expanding into the commercial sector. The company has partnered with major corporations in industries such as healthcare, automotive, and financial services, leveraging its AI-driven analytics to optimize operations. This diversification strategy aims to reduce dependence on government contracts while driving sustainable long-term growth.

Palantir’s recent partnerships include collaborations with Fortune 500 companies seeking to harness AI for business intelligence, cybersecurity, and supply chain optimization. This commercial expansion further strengthens its position as a leading AI-powered enterprise software provider.

Investor Takeaway: Why Palantir Remains a Strong AI Stock

Palantir’s recent stock surge underscores its resilience and long-term potential, despite temporary setbacks. Wedbush’s endorsement, coupled with the company’s robust AI capabilities, indicates that PLTR remains a compelling investment in the AI-driven data analytics space.

As the AI revolution accelerates and organizations increasingly rely on data-driven decision-making, Palantir’s role as a key player in the industry is expected to grow. With continued innovation and strategic expansion into the commercial sector, PLTR may well justify its bullish price target and sustain strong momentum heading into 2025.