12 Trending AI Stocks on Latest News and Ratings

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7. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 43

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On February 5, Tyler Radke from Citigroup reiterated a Hold-equivalent “Neutral” rating on the stock and raised his price target to $110 from $42 previously. The analyst has reservations about the stock, despite Palantir reporting blockbuster earnings driven by robust artificial intelligence demand. Acknowledging that Palantir’s earnings were “impressive,” Radke expressed concerns about its valuation with the stock trading at more than 500 times future earnings estimates.

“While metrics point to inflecting AI growth, we could get more constructive if PLTR showed sustainable levels of upside revisions. There was likely some non-repeatable budget flush in Q4 and now hitting softer Q1 seasonality.”

-Tyler Radke

The analyst has noted that the rise in share price for Palantir has been due to demand driven by the company’s suite of artificial intelligence (AI) products. However, the company’s updated regression implies an enterprise value-to-sales multiple of 56 times for 2026. The return profile for software companies trading above 50 times forward EV/sales “hasn’t been good.”

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