5 Best Software Infrastructure Stocks to Buy Now

3. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 89

On May 2, Stephen Bersey, an analyst at HSBC, downgraded Palantir Technologies Inc. (NASDAQ:PLTR) to Hold from Buy and trimmed the price target to $151 from $205. As said by the analyst, the company was the first one to develop a forward-deployed engineer model by embedding engineers within customer organizations. However, this has led peers like OpenAI to adopt similar approaches.

Bersey believes the rise of agentic frameworks and model-context protocol servers has begun to weaken the company’s long-standing competitive moat. With Anthropic’s boosted revenue, HSBC thinks some of it may be coming at the expense of Palantir Technologies Inc. (NASDAQ:PLTR).

Recently, several other analysts have presented their narratives. RBC Capital views the company’s valuation as unattractive and its risk/reward profile as skewed downward. The firm maintained an Underperform rating and a price target of $90 on Palantir Technologies Inc. (NASDAQ:PLTR) on April 29.

On the other hand, Wedbush is positive about the company’s Artificial Intelligence Platform, noting that its technology is gaining attention through word of mouth among its current customer base. The firm maintained an Outperform rating and a price target of $230 on the company on April 29. With a Buy rating from more than half of the analysts covering the stock, the company remains one of the best software infrastructure stocks to buy now.

Palantir Technologies Inc. (NASDAQ:PLTR), incorporated in 2003, is a Florida-based software platform provider for the intelligence community, supporting counterterrorism investigations and operations.