is one of the emerging players in the field of artificial intelligence (AI). Palantir (NYSE: PLTR ). The company has long been considered an adviser to the US government and its Western allies because of its close ties to the military.
However, over the past year Palantir has been at the forefront of the AI revolution. That’s largely thanks to some early applause following the release of its fourth major product: the Palantir Artificial Intelligence Platform (AIP). AIP’s success is helping change the narrative around Palantir, and more Wall Street figures are sounding the alarm over the company’s software chips.
Dan Ives of Wedbush Securities recently announced on social media that Palantir AIP is a “launching pad for AI use cases.” Its latest research report puts a $35 price target on Palantir stock — up 36% since the market closed on March 11.
Let’s explore how Palantir is winning over customers, and break down how its software is becoming increasingly deployed in the AI realm.
How Palantir is winning in AI
After the release of AIP last April, Palantir began to take a unique approach to marketing the product. The company began hosting immersive seminars called “bootcamps” during which potential customers could test and demo Palantir’s various platforms and identify how its software could play a role in their AI ambitions. can pay
This lead generation strategy has proven successful so far. In 2023, Palantir held more than 500 bootcamps and increased its customer base by 35%. His role in AIP’s rapid adoption and conversion of paying customers has helped to expand margins and generate consistent cash flow for Palantir.
In an environment densely populated with deep-pocketed competitors such as Microsoft And AmazonPalantir shows no signs of slowing down.
Use cases are exploding.
Last week Palantir hosted AIP Con 3. During the event, new customers joined Palantir’s executive leadership and demonstrated how its software is being used.
Here are some notable Palantir use cases at companies in many different industries:
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Lennar is using Palantir to help streamline its land development bidding process.
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General Mills is leveraging Palantir for its logistics and supply chain efforts.
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Cathy Wood favorite Archer Aviation Using Palantir to assist with maintenance and flight routing protocols.
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Low’s Palantir is deploying to help with work queues and agent satisfaction.
Should you invest in Palantir stock?
Looking ahead to its milestone performance in 2023, investors have prized Palantir stock and shares have risen 167% in the past year. So far this year, excitement around the overall AI narrative has helped Palantir stock rise another 45%.
Not surprisingly, this buying activity has caused Palantir’s valuation to multiply. As such, the shares are trading at a significant premium to other software-as-a-service (SaaS) peers.
Palantir is moving fast as it looks to outpace big tech. Additionally, with $3.7 billion in cash and no debt on the balance sheet, combined with consistent profitability, Palantir is in a stronger financial position than many other money-burning software developers.
What makes the list of use cases above so encouraging is the variety of applications that Palantir represents. Companies of all sizes and in all different industries are using the technology.
Now, as bootcamps drive rapid conversion of leads to paying customers, Palantir has first-mover advantage with all these new accounts as it relates to their AI roadmaps. This provides a profitable opportunity for the company to work closely with its customers and identify new use cases and expand across the organization over time.
This dynamic validates Ives’ position. AIP is merely serving as a launch pad as Palantir continues to enter the market for new customers and expand within its existing base. Despite the recent rally in the stock, I think now is as good a time as any to use dollar cost averaging and get some shares in Palantir.
Should you invest $1,000 in Palantir Technologies right now?
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John Mackey, former CEO of Whole Foods Market, is a member of the board of directors of The Motley Fool, an Amazon subsidiary. Adam Spotko has positions in Amazon, Microsoft and Palantir Technologies. The Motley Fool has positions in and recommends Amazon, Lennar, Microsoft, and Palantir Technologies. The Motley Fool recommends Lowe’s companies and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a Disclosure Policy.
Dan Ives just called Pelnair “the launching pad for AI use cases.” Here’s what it means. Originally published by The Motley Fool.