Recent market selloffs have reignited debates over tech valuations and economic strength, especially with AI-focused companies. Palantir stock (NASDAQ:PLTR), Tesla (NASDAQ:TSLA), and Nvidia (NASDAQ:NVDA) experienced declines last week, prompting investors to question market direction. However, Wedbush Securities analysts, led by Dan Ives, see these dips as a buying opportunity. They argue that short-term fears do not affect the long-term potential of AI and technology, and that investors should push through the so-called “whiteknuckle moment” to benefit from future growth.
Hyperscalers continue to invest heavily in AI infrastructure, with no slowdown expected in 2026. Advancements in AI across industries are likely to generate sustained growth, reinforcing Palantir stock’s position as a leading software company leveraging AI through its Gotham and Foundry platforms.
Palantir Stock: Company Overview
Palantir Technologies is headquartered in Denver, Colorado, and works closely with governments, intelligence agencies, and businesses to help identify threats and optimize workflows. The company’s innovative platforms leverage AI to enhance operations across multiple industries.
While Palantir stock has been relatively range-bound since August, it has gained 164% over the past year and an astounding nearly 1,000% over five years. Its unique “Ontology” layer allows organizations to integrate data across departments, creating a competitive moat that sets Palantir apart. Traditional valuation metrics, like price-to-earnings ratios, do not fully capture the company’s long-term potential. Palantir stock currently trades at a forward P/E of roughly 300x, with expected earnings growth averaging nearly 40% over the next three years.
Earnings Beat Fuels Investor Confidence
Palantir reported strong Q3 results on Nov. 3, beating consensus estimates. EPS came in at $0.21 versus the expected $0.17, on revenue of $1.18 billion compared with $1.09 billion anticipated. Government sales rose 52% year-over-year, while the commercial segment surged 121%, signaling that Palantir is successfully expanding beyond its traditional government base.
Annual revenue guidance increased to $4.4 billion, surpassing Wall Street expectations of $4.17 billion, with free cash flow projected around $2 billion. Notably, the company closed deals worth $1.3 billion in total contract value, up sixfold from the prior year. Companies are now deploying Palantir’s technology across entire organizations rather than individual segments, highlighting the growing adoption of its Ontology platform.
Analyst Sentiment on Palantir Stock
Due to Palantir stock’s high valuation, Wall Street remains cautious. Out of 21 analysts covering the stock, 14 rate it a “Hold” while four continue to assign a “Strong Buy.” The consensus target price is $192.67, suggesting roughly 11% upside, with the highest target reaching $255 for a potential 46% gain.
Wedbush analysts emphasize that despite market volatility, Palantir stock offers long-term growth potential driven by AI adoption, commercial expansion, and strong recurring revenue streams. Investors willing to withstand near-term swings may benefit from the company’s continued success and unique technological advantage.
Conclusion
Palantir stock is well-positioned to capitalize on the ongoing AI boom. With record earnings, rapid commercial adoption, and robust revenue guidance, the company offers compelling long-term prospects. While high valuation metrics warrant caution, investors focused on AI-driven growth may view PLTR as a strategic addition to their portfolios, capable of delivering strong returns in the years ahead.
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Author Stephanie Bédard-Châteauneuf 
