Palantir Stock Rebounds as Analysts Predict Major AI Growth Opportunities

Despite recent losses tied to defense budget cuts, analysts highlight Palantir's potential to thrive under growing federal AI investments.

Palantir shares rose over 6% in trading Monday following Wedbush analysts naming it a top stock to own in 2025.
The stock had recently dropped nearly 30% after reports of an 8% annual cut to the Pentagon's budget, which raised concerns about its reliance on government contracts.
Wedbush analysts argue Palantir's AI capabilities align with the Trump administration's efficiency goals, potentially leading to increased federal spending on its technology.
Analysts set a $120 price target for Palantir, citing its unmatched AI platform and potential to reach a $1 trillion market cap over time.
Palantir's Q4 revenue grew 36% year-over-year, with U.S. government contracts accounting for 45% of its total revenue.