Palantir bull: “In the sweet spot”
Dan Ives of Wedbush Securities said today’s news of a key software sale to NATO is in line with his view that Palantir is in good position to benefit from a “tidal wave” of government spending on AI software.
Palantir’s strong start to the week, on news that NATO will use its Maven Smart System AI software, is consistent with bullish Wedbush analyst Dan Ives’ view that the software firm remains well positioned to weather White House efforts to cut defense spending relatively well.
In a note published Monday, he wrote:
“While there were concerns surrounding defense spending being scrutinized with PLTR taking a major blow over the past few months, we believe the company’s unique software approach will enable the company to capitalize on the growing demand for AI implementation while capable of handling the most sensitive workloads putting the company in a strong position to gain further market share in the US Federal market as the government will have to lean on PLTR to become more efficient with DOGE remaining prevalent.
We believe this deal represents an additional tailwind for PLTR with AI initiatives across both the US and European governments accelerating as AI remains a strategic focus on the federal front with Palantir in essence in the sweet spot to benefit from a tidal wave of federal spending on AI across North America and Europe.”
While a recent rally in Palantir has helped the shares regain their footing after taking a header this month, Palantir remains down nearly 20% since the market peaked on February 19. The company is set to report Q1 earnings in just under a month on May 12.
