Palantir stock (NYSE:PLTR) is back in the spotlight after Wedbush analyst Dan Ives issued a bullish note calling the company the “Messi of AI.” With shares up over 100% from their January 2025 lows and Ives raising his price target to $160, investors are asking the obvious question: Is Palantir stock still a buy?

Dan Ives: Palantir Stock Is on a “Golden Path”

In his research note, Ives reiterated his “Buy” rating and emphasized that Palantir stock could emerge as a core winner in the multitrillion-dollar AI spend expected over the coming years. His note cited the company’s Artificial Intelligence Platform (AIP) as a key driver of “unprecedented demand” from both government and commercial sectors.

Notably, Palantir recently expanded its reach by partnering with The Nuclear Company, a move that pushes its AI offerings beyond traditional defense and business intelligence applications.

Despite the stock’s massive rally this year, Ives believes that PLTR remains well-positioned to capitalize on the explosive growth in AI. His optimism is anchored not only in Palantir’s technology but also in its ability to convert client engagements into recurring revenue.

Palantir: Valuation vs. Vision

One of the main concerns surrounding Palantir stock is its valuation. As of now, PLTR trades at a forward P/E ratio of roughly 382x—significantly higher than AI leader Nvidia (NASDAQ:NVDA), which trades at around 40x.

Such a premium has raised eyebrows across Wall Street. However, Dan Ives argues that the valuation should be seen in the context of long-term growth. In his words, Palantir is on a “golden path to become the next Oracle (NYSE:ORCL),” suggesting that current metrics may not fully reflect the company’s future potential.

The AI revolution is still in its early innings, and companies like Palantir that are deeply embedded in solving complex problems for governments and enterprises could benefit disproportionately in the long term.

Wall Street Is Still Cautious on Palantir Stock

While Ives is bullish, broader Wall Street sentiment remains mixed. According to Barchart, the consensus rating on Palantir stock is currently “Hold.” The average analyst price target is around $105—indicating a potential 23% downside from current trading levels.

This divergence highlights the debate between those who see Palantir’s AI-driven future as inevitable and those who view the stock as overextended in the short term.

Skeptics point to slowing growth in Palantir’s legacy government contracts, as well as concerns about scalability in its commercial division. Until these areas show more robust, sustained acceleration, many analysts remain on the sidelines.

What Should Investors Do With Palantir Stock?

For those with a long-term horizon and high risk tolerance, Palantir stock may still present a compelling opportunity. The company’s leadership in AI, its expanding commercial footprint, and increasing relevance in national security give it a unique edge.

However, investors should also be realistic about short-term volatility. The stock is richly valued, and any stumble in growth or guidance could trigger sharp pullbacks.

If you’re already holding Palantir, Ives’ latest endorsement might be reason enough to stay the course. But if you’re looking to initiate a position, waiting for a pullback could offer a more favorable entry point.

Despite differing opinions on Wall Street, one thing is clear: Palantir stock is at the heart of the AI conversation. Whether it fulfills its potential or not, PLTR is a name to watch closely as the AI race heats up.

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