Why Palantir (Nasdaq: PLTR) Is Soaring And What Wall Street Thinks About the Stock

Palantir Technologies (NASDAQ: PLTR), a leader in AI-driven data analytics, is surging 7.08% to $100.22, reclaiming the $100 mark.

The rally is propelled by two catalysts. First, the Trump administration’s signal of a near-term U.S.-China trade deal to lower tariffs has ignited a tech stock rally, lifting Palantir alongside broader markets. Second, Palantir’s FedStart platform, designed for government compliance and scalability, is now integrated into Alphabet’s (NASDAQ: GOOG) Google Cloud, boosting its appeal to public-sector clients. X posts buzz with optimism, citing Palantir’s $3.7 billion backlog and AI dominance, though its valuation at 158 times forward earnings raises concerns.

Wall Street’s View on Palantir

Wall Street’s view on Palantir is mixed. William Blair upgraded PLTR to “Market Perform” from “Underperform” on March 5, while Wedbush reiterated an “Outperform” rating this month, praising its AI leadership. However, Morgan Stanley cut its price target from $95 to $90 on April 16, maintaining “Equal Weight.” The consensus price target is $100, implying flat returns from $100.22, with a “Hold” rating (3.08 score) from 25 analysts (11 Holds, 4 Buys, 3 Sells). Despite valuation risks, Palantir’s 29–30% year-over-year revenue growth and strategic AI contracts fuel optimism.

Palantir has outperformed the market, gaining 20% year-to-date in 2025 versus the S&P 500’s 12% decline, following a 340% surge in 2024. However, shares are 28% below their 52-week high of $125.41, sparking debate about a buy-the-dip opportunity. The company’s AI-driven platform drives its edge, with Q4 2024 revenue up 36% to $828 million, led by 52% U.S. growth. Palantir generated $1.15 billion in cash flow from $2.87 billion in 2024 revenue, showcasing financial strength. Management projects 30.5–31% revenue growth for 2025 and adjusted operating income of $1.55–$1.57 billion, up from $1.3 billion.

Other AI and analytics stocks are also rising. Snowflake (Nasdaq: SNOW) gained 5.5%%, driven by enterprise AI demand. C3.ai (Nasdaq: AI) rose 2.32%, buoyed by sector tailwinds. Datadog (Nasdaq: DDOG) climbed 4%, fueled by cloud analytics growth. Palantir’s government-focused FedStart integration gives it a stronger lift compared to these enterprise-centric peers. With a $220 billion market cap and 80.25% gross margins, Palantir remains a high-growth, high-risk play.