Shares of Palantir Technologies (NASDAQ:PLTR) fell over 10% on May 6, despite the company delivering strong first-quarter results for fiscal 2025. This drop has prompted many investors to revisit their Palantir stock forecast and ask: is now the right time to buy the dip?
Some analysts remain cautious, pointing to short-term concerns. Others, like Dan Ives of Wedbush Securities, see a discounted opportunity to invest in what they believe is a long-term AI powerhouse.
Why Did Palantir Shares Fall?
According to Louie DiPalma, an analyst at William Blair, the decline in PLTR shares stems from two key metrics that missed expectations: sequential margin compression and a year-over-year decline in international commercial revenue.
These figures concerned investors, even though Palantir beat earnings estimates and raised its full-year guidance. In the high-expectation world of artificial intelligence and big data, any softness can trigger swift reactions.
CEO Alex Karp Is Still Bullish
Despite the stock’s drop, Palantir’s leadership remains confident. On the earnings call, CEO Alex Karp highlighted that the company’s U.S. commercial revenue now has a $1 billion run rate, a milestone he described as “the gold standard” for breakthrough success.
Karp also reaffirmed the company’s vision in the AI-driven analytics space, emphasizing strong momentum and growing customer demand. This positive outlook is a critical element in the Palantir stock forecast for long-term investors who see beyond quarterly fluctuations.
Dan Ives: PLTR Is the “Messi of AI”
Dan Ives, a senior analyst at Wedbush, didn’t mince words in a recent research note, calling Palantir the “Messi of AI.” He believes the post-earnings dip offers a prime buying opportunity for investors.
In an interview with CNBC, Ives even projected that Palantir’s market cap could surpass $1 trillion in the next three years if it continues to scale its AI capabilities. His current price target for PLTR is $140, which implies a 30% upside from recent levels.
This optimistic Palantir stock forecast hinges on the company’s dominance in secure, government-grade AI and its expanding presence in commercial AI services.
Wall Street’s Mixed Palantir Stock Forecast
Not everyone agrees with Ives’ bullish stance. The broader analyst community remains divided. The current consensus rating for Palantir stock is “Hold,” with a mean target price of $84—over 20% below current levels.
Skeptics cite valuation concerns. Palantir stock trades at a premium relative to other tech stocks, and some analysts worry that future growth may already be priced in. For these reasons, the Palantir stock forecast is far from unanimous.
What Should Investors Do Now?
With shares pulling back despite strong fundamentals, long-term investors may view the dip as a chance to accumulate. Palantir continues to show robust growth in AI and data analytics, particularly in its U.S. commercial business. Its raised full-year outlook further supports confidence in ongoing execution.
Still, valuation risk and divergent analyst opinions make Palantir a stock for investors with a higher risk tolerance. If you’re bullish on AI and willing to ride out near-term volatility, PLTR may be a compelling name to watch.
Final Word on the Palantir Stock Forecast
Palantir Technologies (NASDAQ:PLTR) remains a divisive name on Wall Street. After a sharp post-earnings sell-off, the stock offers both opportunity and risk. Bulls see a transformative AI leader trading at a discount. Bears worry about sky-high valuations and inconsistent international growth.
For investors focused on long-term AI potential, Palantir’s trajectory remains promising—especially if the company continues to meet or beat expectations in coming quarters.
As the AI arms race heats up, the Palantir stock forecast will likely remain a battleground for bulls and bears alike.
Featured Image: Freepik
Author Stephanie Bédard-Châteauneuf 
