15 Best Performing AI Stocks Heading into 2026

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5. Palantir Technologies Inc. (NASDAQ:PLTR)

Year-to-Date Performance: 120.47%

Number of Hedge Fund Holders: 81

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best-performing AI stocks heading into 2026. On November 13, Freedom Capital Markets increased its price target on Palantir Technologies Inc. (NASDAQ:PLTR) from $125 to $170 but kept a Sell rating.

This update came after the company reported Q3 2025 results, which beat both guidance and market expectations. Palantir Technologies Inc. (NASDAQ:PLTR) reported strong growth in its US Commercial segment. However, Freedom Capital noted that European operations stayed flat. The company’s management provided Q4 guidance above market expectations and increased its full-year 2025 outlook.

Freedom Capital also pointed to potential risks for Palantir Technologies Inc. (NASDAQ:PLTR) in 2026. These include a possible slowdown in US Commercial growth after a record year, potential pressure on defense budgets, and margin challenges because of investments in hiring for its AI initiatives. Freedom Capital believes that Palantir Technologies Inc.’s (NASDAQ:PLTR) stock valuation is elevated and noted that the current high growth is “unlikely to persist indefinitely.”

Previously, on November 4, Morgan Stanley had also raised its price target on Palantir Technologies Inc. (NASDAQ:PLTR) from $155 to $205 but maintained an Equal Weight rating. The firm’s analyst noted that the company had reported its ninth straight quarter of accelerated growth. Morgan Stanley noted that this momentum is expected to grow, citing Q4 growth guidance and strong new business bookings in Q3.

Palantir Technologies Inc. (NASDAQ:PLTR) is an American software company that specializes in big data analytics and AI platforms. The company serves key government and commercial enterprises.

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