Wedbush Predicts Palantir’s Market Cap Could Reach Trillion-Dollar Status, Potentially Rivaling Oracle and Salesforce Amid AI Revolution

This article is not intended as investment advice. The author does not hold any positions in the stocks discussed herein.

Wedbush Analyst Remains Optimistic on Palantir

Dan Ives, an analyst with Wedbush, continues to express strong confidence in Palantir Technologies, even amid significant stock market fluctuations. In his latest commentary, he reiterates a positive outlook for the company’s future prospects.

Understanding Palantir’s Business Model

For those unfamiliar, Palantir is a leading Software-as-a-Service (SaaS) company driven by artificial intelligence. It facilitates data collection and analysis for both businesses and government entities, allowing users to uncover complex patterns within large datasets. The platform’s intuitive design ensures that users can easily interpret the information presented.

Market Challenges and Stock Performance

Recently, Palantir’s stock has faced a downturn, particularly following a directive from U. S.Defense Secretary Pete Hegseth, who mandated a significant reduction in the Pentagon’s budget—an annual cut of 8 percent. Since the company relies heavily on government contracts, this budget reduction acted as a negative trigger for its stock price.

Analyst Projections and Investor Sentiment

In light of these challenges, Ives has upheld an ‘Outperform’ rating for Palantir, setting a price target of $120 per share. He emphasizes that the firm’s “AIP product moat”is unparalleled and contends that Palantir is at the forefront of the AI revolution, transitioning into practical applications.

“Palantir remains one of our top names to own in 2025 and we believe this recent sell-off represents another opportunity with PLTR generating unprecedented traction across both federal and commercial for its entire portfolio.”

Future Potential and Market Cap Expectations

Ives envisions even greater potential for Palantir, suggesting it could evolve into a company with a trillion-dollar market capitalization, akin to industry giants like Oracle or Salesforce, as the AI landscape develops.

“We believe Palantir could be a trillion market cap over the coming years and shaping up to be the next Oracle or Salesforce as the AI Revolution plays out and PLTR will further grow into its valuation.”

Current Market Status

At the time of writing, Palantir shares have risen by 3% in pre-market trading, though they still trade at about a 30% discount to the $120 target set by Wedbush.

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