Palantir Technologies Inc. gained 8.11% in morning trading.
Wedbush Securities analyst Dan Ives, who also put a per-share price target of $25 Palantir Technologies (PLTR) shares, said he believes the company has built an "AI fortress" that he believes is "unmatched," allowing the company to play a key role in the coming artificial intelligence revolution.
"As we begin the 4th Industrial Revolution, Palantir is engaging in the widespread trend of various industries leveraging recent generative AI innovations to streamline operations and improve expense profiles," Ives wrote in an investor note. "Given the company's extensive experience handling customer data, PLTR’s transition to a pure-play AI name will leverage its existing expertise to drive advancements and deliver AI solutions powered by high-quality data."
Ives added that Palantir's (PLTR) "secret sauce" is human-driven analysis that leverages AI and creates platforms that allow their customers to address questions without the need for any kind of expertise. It also works closely with its customers to deploy the product, optimize the workflow and production operation results, allowing it to succeed.
Over the next six to twelve months, Ives said that Palantir (PLTR) is likely to capitalize on new uses, given its partner ecosystem and "extensive" product capabilities, as enterprises continue to add generative artificial intelligence features.
"This is early innings on a sum-of-the-parts AI story just on the cusp on monetizing this massive green field AI opportunity," Ives added.