Tech Analyst Expects Palantir Stock To Rise Above $400 As AI Revolution Kicks Into Gear

Palantir Technologies Inc PLTR stock has soared nearly 500% over the past year driven by its positioning in the AI space. One analyst believes the stock has a lot more runway ahead with the AI revolution still in its early stages.

What To Know: Wedbush’s Dan Ives famously calls Palantir the “Messi of AI” because he expects the company to be one of the biggest beneficiaries of the AI boom. He’s been right so far, and he’s not pulling back on his bullish stance in the slightest.

Wednesday on CNBC’s “Squawk On The Street,” Ives predicted that Palantir stock will more than triple in the coming years and trade above $400 per share.

“That’s why it’s the ‘Messi of AI.’ I believe we’re talking about a trillion-dollar market cap for Palantir in the next few years, and I think when you look at what [Alex] Karp and Palantir are doing, they, along with Nvidia, will be leading the AI revolution,” Ives said.

The other massive beneficiary of AI has been NVIDIA Corp NVDA, which is scheduled to report earnings after the market close on Wednesday. Ives expects the results to act as a “bright green light” for tech investors as demand continues to easily outweigh supply.

There’s only one chip in the world fueling the AI revolution and that’s Nvidia’s, Ives said, adding that AI is driving the fourth Industrial Revolution. He expects Nvidia’s quarterly report to be the catalyst that kicks off a run to new highs for tech.

Check This Out: Nvidia Bullish Ahead Of Q1 Earnings, But Will H20 Chip Woes Dampen The Party?

Many analysts disagree with Ives on Nvidia and Palantir, especially Palantir, given its massive surge over the past year and its becoming one of the best-performing names in the S&P 500.

Ives told CNBC that many analysts hated Palantir when it hit $25, despised it when it hit $50 and $100, but the deals keep coming in and the company is doing it without a traditional sales team.

“I believe it’s a trillion dollar market cap in the next two to three years, and I think look, haters hate on this one, but I think they continue to underestimate the pure success that they’re seeing,” Ives said.

“Karp, he’s playing chess, others are playing checkers. And I think you are starting to realize more and more in government, enterprise, and that’s why you cannot talk AI revolution without saying Palantir.”

In order for Palantir to reach a $1 trillion market cap valuation, the stock would need to climb to $427.35 per share. Palantir had a market cap of $291.19 billion as of Tuesday’s close.

PLTR Price Action: Palantir shares were up 1.15% at $124.81 at the time of publication Wednesday, according to Benzinga Pro.

Read Next:

• Palantir Partners With Bain & Company To Accelerate Global Enterprise AI Adoption

Photo: slyellow/Shutterstock.