Is Palantir (PLTR) Undervalued After Nvidia Partnership and DA Davidson Upgrade?
DA Davidson upgraded Palantir Technologies (PLTR) to Buy with a $30 price target, coinciding with an expanded Nvidia partnership to deliver secure, customizable AI models to U.S. agencies and critical infrastructure clients. The stock rebounded 14.55% in seven days but remains down 21.04% year-to-date.
Key Numbers
Palantir Technologies (PLTR) announced an expanded partnership with Nvidia to deliver secure, customizable AI models to U.S. agencies and critical infrastructure clients, coinciding with a bullish upgrade from DA Davidson.
Rating Change
DA Davidson upgraded Palantir from "Neutral" to "Buy" with a new price target of $30 per share, implying approximately 20% upside from current levels.
Analyst Rationale
The analyst believes the expanded Nvidia partnership gives Palantir a competitive edge in the government AI market, especially with the current U.S. administration's focus on cybersecurity and defense AI. Palantir's ability to integrate Nvidia's models with its Gotham and Foundry platforms makes it a unique partner for agencies.
Context
The upgrade comes after a sharp pullback in Palantir's stock, which is down 21.04% year-to-date. However, the stock rebounded 14.55% in the past seven days. Other analysts remain cautious, with a consensus price target of $25.
What to Make of It
While the Nvidia partnership strengthens Palantir's position in government AI, the stock remains volatile. Investors should monitor execution on new government contracts and revenue growth before making decisions.
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