Here's Why Dan Ives Thinks Palantir Is A Winner Despite Its Lofty Valuations: 'In The Next 12 To 18 Months...They're Going To Have Significant Step Ups'

In a recent podcast with Dan Nathan, Wedbush Securities‘ analyst Dan Ives expressed a bullish outlook on Palantir Technologies Inc. PLTR, emphasizing its significant role in the enterprise AI landscape despite lofty valuation.

What Happened: Ives believes that Palantir is uniquely positioned to exploit real-world enterprise use cases. This comes despite skepticism over Palantir’s high valuation. Palantir’s platforms, Gotham and Foundry, utilize AI and big data analytics to simplify complex data management and expedite decision-making.

Ives highlighted that Palantir is involved in “75 to 80 large AI enterprise deals”, with contracts typically ranging from $3-5 million, and some even reaching eight figures over multiple years.

Enterprises are not turning to Microsoft MSFT or Oracle ORCL, according to Ives. Instead, they are opting for Palantir for data analytics and ServiceNow NOW for process automation of these “real enterprise use cases”, resulting in a complementary dynamic where both companies prosper without direct competition.

While acknowledging competitive threats like Snowflake and MongoDB, Ives contends that Palantir’s 20-year history and proprietary AI tools provide a unique advantage, especially in government and high-stakes commercial deals. Ives’ bullish outlook on Palantir stems from its potential to grow its large base of enterprise customers and turn its pipeline of multi-million-dollar deals into revenue.

“When I look out in the next 12 to 18 months…I believe they’re going to have significant step ups in terms of what we see in US commercial,” stated the Wedbush Analyst

Why It Matters: Earlier this year, Ives predicted that Palantir could emerge as a dominant force in the artificial intelligence software landscape, comparing it to industry giants Oracle Corp. and Salesforce Inc. He highlighted the multiplier effect of AI infrastructure spending, noting that "for every dollar spent on Nvidia chip NVDA, there's an 8 to $10 multiplier across tech, across the ecosystem software." This trend is particularly evident in companies like Palantir and Salesforce CRM

In April, Ives reiterated confidence in Palantir's growth prospects after the software firm disclosed a deal with the North Atlantic Treaty Organization (NATO) amid its growing "federal and commercial" portfolio.

Despite Palantir’s strong earnings release in early May, the stock lost value. However, Ives maintained his bullish stance, emphasizing that Palantir is a ‘retail-driven story.’

On a year-to-date basis, Palantir stock surged 57.55%, as per data from Benzinga Pro.