10 AI Stocks on Market Radar

5. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 78

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 AI Stocks on Market Radar. On Sep 23, BofA Securities analyst Mariana Perez Mora raised the price target on the stock to $215.00 (from $180.00) while maintaining a Buy rating. The firm also reiterated Palantir’s position on US 1 List.

BofA believes that Palantir’s “secret sauce” lies in its Ontology architecture and FDEs (forward deployed engineers) go-to-market strategy. BofA isnt the only in this view, with other notable firms such as Goldman Sachs and UBS having similar opinion.

“Palantir is unique relative to traditional software companies in that it leverages forward deployed engineers (FDEs) to help customers identify and build out custom use cases.”

-Goldman Sachs analyst Gabriela Borges.

At UBS, analyst Karl Kierstead said:

“While many sell-side Wall Street analysts may be mixed on the merits of Palantir’s FDE model, Palantir’s customers are not. The consensus customer view of Palantir’s FDEs is positive.”

The company deploys its own software engineers at customer locations to observe workflows.

According to BofA, discussions with Palantir’s Chief Architect Akshay Krishnaswamy have revealed how its unique data system and hands-on engineers, along with Agentic AI capabilities, are helping expand its use cases.

The company has won its first billion-dollar award from UK’s Ministry of Defense reflecting rising demand from US allies. Its Maven Smart System also continues to grow, selected in April by NATO.

“We reiterate our Buy rating and raise our PO to $215 (from $180) to reflect stronger growth across applications (estimate changes on page 4) on a 15x EV/EBITDA on 2035E (unchanged). As part of President Trump’s state visit to the UK, Palantir announced a Strategic partnership with UK’s MOD. The 5-year long, up-to £750mn award marks Palantir’s first billion-dollar (US$) deal outside the US and builds on Palantir’s existing UK exposure (NHS & MOD) and growing international demand among US allies. Palantir’s Maven Smart System continues to grow (see our note) in the US – 8x since early 2024 – and was selected in April by NATO (see our note) to augment intelligence, target recognition, battlespace awareness, and decision-making capabilities for warfighters. We expect other countries to increasingly consider Maven as their global digital battle-management system, as it provides both interoperability with the US and allies as well as governance on their own data. We now expect Government sales to exceed $8bn by 2030 (2025-30E CAGR up to 30% from 27%).”

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.