This is One of The Best AI Stocks to Own In 2026

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Palantir Technologies (NASDAQ:PLTR) has become the poster child of the enterprise AI trade, and after a sharp first-half pullback, our proprietary model sees the setup skewing bullish again. Shares closed at $129.30 on July 2, and our 24/7 Wall St. price target for Palantir is $161.53 over the next 12 months, implying 24.93% upside. Our recommendation is buy, with a high confidence level of 90%.

24/7 Wall St. Price Target Summary

A Volatile Path Back to $129

Palantir has been one of the most whiplashed AI names of 2026. The stock is down 27.26% year to date after peaking at $207.52, yet it has rebounded 20.54% in the past week off the recent low of $106.37. The pullback came despite fundamentals that keep getting stronger.

In Q1 2026, reported May 4, PLTR delivered adjusted EPS of $0.33 against a $0.28 consensus, on revenue of $1.632 billion, up 84.7% year over year, the highest growth rate in company history. U.S. commercial revenue exploded 133% to $595 million, and management raised full-year revenue guidance to $7.65 to $7.66 billion.

The Case for $200+

Bulls have specific numbers to lean on. Palantir’s Rule of 40 score is 145%, a level CEO Alex Karp said is “matched only by other fellow AI infrastructure companies: NVIDIA, Micron and SK Hynix.” U.S. commercial remaining deal value hit $4.92 billion, up 112%, and PLTR closed 47 deals of $10 million or more in the quarter alone. Adjusted operating margin expanded to 60%, and free cash flow surged 204% to $924.6 million.

The Street’s consensus target of $183.12 with 20 Buy or Strong Buy ratings underscores this view. Our bull-case scenario puts PLTR at $203.24 within a year if AIP adoption keeps compounding.

What Could Go Wrong

The valuation is the risk. PLTR trades at a trailing P/E of 145 and a forward P/E of 89, with a price-to-sales of 59. Michael Burry’s June 3 critique labeling Palantir “A Sand Castle Supported Only By AI Applications Narrative” drove sustained bearish discussion.

Insider activity has been net selling, with directors and executives, including CEO Karp, disposing of shares in the $132 to $137 range following May 20 vesting. Bulls counter that most of this reflects planned 10b5-1 disposals executed after a scheduled RSU vest. A multiple compression toward peer software levels puts our bear-case at $141.79.

The Setup Into Q2 Earnings

The 24/7 Wall St. price target of $161.53 and buy rating reflect a rare combination of hypergrowth and cash generation. A key technical level to watch is the 50-day moving average of $134.58 into Q2 earnings, which management guided to $1.797 to $1.801 billion in revenue.

A deceleration in U.S. commercial growth below 100% would materially weaken the thesis. With the Rule of 40 at 145%, the model’s balance of factors leans constructive.

Looking further ahead, here is where our model projects Palantir could trade, assuming current growth trajectories hold and multiple compression proceeds gradually.

These projections assume Palantir keeps executing on AIP monetization and U.S. commercial expansion. Significant upside or downside could result from federal spending shifts or aggressive multiple compression.

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