5 AI Stocks That Are About to Explode

3. Palantir Technologies Inc. (NASDAQ:PLTR)

Average Price Target Upside Potential According to Analysts: 49.26%

Number of Hedge Fund Holders: 89

Palantir Technologies Inc. (NASDAQ:PLTR) ranks among AI stocks that are about to explode. On May 15, Reuters reported that institutional investors increased their exposure to semiconductor and technology companies during the first quarter of 2026.

According to a Reuters review of filings submitted to the US Securities and Exchange Commission by around 6,600 hedge funds, pension funds, college funds, and other investors, it appears that many are positioning themselves to benefit from the strong rally that continued into the second quarter.

Reuters noted that 143 investors started a position in Palantir Technologies Inc. (NASDAQ:PLTR). Among these investors was Mubadala Capital, the sovereign wealth fund of the UAE. According to its filing, Mubadala Capital acquired a new stake in the company worth about $9.9 million during the first quarter.

Earlier, on May 6, Citi increased its price target on Palantir Technologies Inc. (NASDAQ:PLTR) from $210 to $225 while keeping its Buy rating on the stock. The firm pointed out that the company delivered a strong first-quarter report. Citi added that growing demand for AI is helping accelerate the company’s business in the United States. Citi also increased its estimates for the company following the earnings results.

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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