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Palantir (PLTR) Slides 20%, but Analyst Upgrade Signals Fresh Optimism

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 Trending AI Stocks According to Analysts. After three years of triple-digit gains, Palantir stock has retreated more than 20% since the start of the year. Nevertheless, Daiwa has upgraded the stock post earnings, citing artificial intelligence-driven growth momentum amid bigger contracts. On February 10, Daiwa Securities analyst Shigemichi Yoshizu upgraded the stock to “Buy” from Neutral.

For the full-year 2026, the company said that it expects revenue of almost $7.2 billion, up about 61%.

“The robust showing continued to be driven by the US business which saw US commercial revenue surge 137%, accelerating 16 points vs. 3Q.”

“This owed to an increase in long-term commitment contracts following the proof-of-concept stage, as customers are now implementing AI on a companywide basis using the firm’s artificial intelligence platform (AIP). As a result, growth in the customer base has moderated, but contracts are becoming larger thanks to greater usage by existing customers.”

The firm further noted how Palantir has been prioritizing the deeper integration of its platform by existing customers instead of aggressively pursuing new customer acquisitions. Consequently, it has been enjoying an increase in long-term commitment contracts.

“ARPU (average revenue per user) has continued to grow, led by the U.S. commercial business. In the short term, we see a high likelihood of the firm continuing to use this business model, premised on growth driven by existing customers. As such, we think the firm’s current earnings projections look achievable/reasonable.”

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.

While we acknowledge the potential of PLTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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