10 AI Stocks Surging on News and Analyst Calls

8. 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 February 20, William Blair analyst Louie DiPalma reiterated their bearish stance on the stock, giving a “Sell” rating. Even though there is a significant potential for a positive impact of artificial intelligence on Palantir’s operations, budget concerns and possible shifts in US military funding have led to the sell rating by the firm.

An estimated 22% of Palantir’s government revenue is dependent on the US Army, and since there may be potential delays in important contracts such as TITAN and Army Network modernization, it poses a serious concern for Palantir. The company’s U.S. government business is also facing a deceleration in revenue growth, further reinforcing a sell rating on the stock. Finally, DiPalma also highlighted how Palantir’s market capitalization is higher compared to rivals.

Analysts on Wall Street currently have a consensus “Hold” rating on the stock. The average price target of $97 implies a 4% downside, however, the Street-high target of $160 implies an upside of 58%.