The Billion-Dollar AI Contract That Has Wall Street Talking About Palantir (PLTR)

We recently published a list of 10 AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other AI stocks on Wall Street’s radar.

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On May 23, Wedbush analyst Dan Ives reiterated an “Outperform” rating on the stock with a $140.00 price target. The rating update follows Palantir being awarded a $795M U.S. Army modification contract for Maven Smart System software licenses. According to the firm, Palantir is a major player within the US government.

“Palantir remains one of our top names to own in 2025 and this deal represents another opportunity for PLTR to capitalize on while continuing to generate unprecedented traction for its entire portfolio across in the federal and commercial landscapes.”

-Analysts led by Daniel Ives.

The Billion-Dollar AI Contract That Has Wall Street Talking About Palantir (PLTR)

A software engineer intently typing code into a laptop with multiple screens in an office.

The company has secured its first-ever billion-dollar contract with the Department of Defense for data fusion and target identification. In addition to the recent $795M US Army modification contract, the company had received a nearly $480M Maven Smart System back in May 2024, bringing the total value of the contract up to around $ 1.3 B.

The firm further stated that “Palantir in essence in the sweet spot to benefit from a tidal wave” of federal spending on AI across North America and Europe.

Overall, PLTR ranks 9th on our list of AI stocks on Wall Street’s radar. While we acknowledge the potential of PLTR as an investment, 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.

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