Palantir stock swings on analyst upgrades and Nvidia partnership

Several Wall Street analysts have recently raised expectations for Palantir Technologies (PLTR). DA Davidson analyst Gil Luria upgraded the stock to “buy,” lifting his price target from $165 to $175 and projecting up to 30% upside. Other forecasts suggest the shares could climb as much as 55% within a year.

The upgrade follows a 14% rally after Palantir announced a partnership with Nvidia, which investors view as strengthening its AI orchestration platform. The company’s AI platform, which helps reduce hallucinations and integrates disparate data sources, has driven rapid customer growth, including a 133% rise in U.S. commercial revenue last quarter.

Despite the optimism, some market commentary points to heightened risk and a recent pullback in the stock price, warning that valuation remains high. Analysts note the premium valuation metrics (forward P/S of 45.5, forward P/E near 93) and suggest investors should weigh the upside against the risk of a correction.