Is Palantir Technologies Inc. (PLTR) Losing Its Moat as AI Rivals Catch Up?

Palantir Technologies Inc. (NASDAQ:PLTR) is among the best software infrastructure stocks to buy now. 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).

Why Palantir (PLTR) Remains a Standout in Agentic AI at Scale

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.

While we acknowledge the risk and potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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