13 Best Long Term Growth Stocks to Buy According to Hedge Funds

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10. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 81

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best long term growth stocks to buy according to hedge funds. Truist initiated coverage of Palantir Technologies Inc. (NASDAQ:PLTR) with a Buy rating on January 6, and set a price target of $223. The firm told investors that the adoption of GenAI could “compress the market impact” of the last four decades of enterprise technology into a mere five to ten upcoming years, which is a backdrop that provides Palantir Technologies Inc. (NASDAQ:PLTR) with a “unique market position”, “ideally positioned for increased AI adoption by both governments & enterprises.”

The firm added that AI-driven momentum has propelled the company’s US business, resulting in a 77% year-over-year growth in fiscal Q3 2025. It expects similar tailwinds to gradually expand Palantir Technologies Inc.’s (NASDAQ:PLTR) international operations as well. In addition, the company holds the potential to meaningfully bolster capital returns over time, with free cash flow margins surpassing 40%. According to the firm, this is likely through share repurchases that can position the company to offset stock-based compensation dilution.

However, RBC Capital reiterated a Sell rating on Palantir Technologies Inc. (NASDAQ:PLTR) on January 5 and set a price target of $50.00.

Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms that serve as central operating systems for customers. The company focuses on augmenting human intelligence and developing products for human-driven real-world data analysis. Its commercial segment manages customers in non-government industries, while the government sector includes customers from the United States government and non-United States government agencies.

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