10 AI News Updates Making Waves on Wall Street

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9. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 63

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On Friday, February 21, RBC Capital analyst Rishi Jaluria maintained an “Underperform” rating on the stock with a $40 price target.

The firm noted how Palantir shares fell for the two trading days before Friday, largely because the Chief Accounting Officer resigned as communicated in the 10-K. The other two reasons that the firm quoted were reports about planned defense budget cuts and the adoption of a new trading plan by its CEO that allows for the sale of up to 10M shares through September 12, 2025.

The Trump administration plans to cut the US defense budget by 8% annually over the next five years, a setback for the company which receives over 40% of its revenue from government contracts. While the company’s growth is challenged by these cuts and shifting military funds, analysts argue that its AI-driven efficiencies could open up new investment avenues. Nevertheless, Jaluria maintains that the firm sees “further downside from here”.

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