35 AI Superstars According to Goldman Sachs

31. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders: 44  

Palantir Technologies Inc. (NYSE:PLTR) builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations. Bank of America recently raised the price target on the stock to $50 from $30 and kept a Buy rating on the shares. The advisory viewed Palantir’s capabilities, technology and path forward facing a fundamental misunderstanding and contended that the upcoming S&P 500 inclusion provided a watershed moment for institutional investors to revisit what they know about Palantir. The company’s non-conventional sales approach, where the engineers played a key role, had been highly criticized, but the advisory noted that the engineer-sales bond was also a key factor to the company’s pricing strategy and viewed this approach as a key differentiator to profits’ robustness, especially compared to other software companies.

Ryan Taylor, the chief revenue officer of Palantir Technologies Inc. (NYSE:PLTR), highlighted during the second quarter earnings call that the revenue expectations from AI infrastructure build-out have grown from $200 billion to $600 billion per year in just nine months, noting that his firm was uniquely positioned to take advantage of this as it delivered enterprise AI solutions on a scale unlike any other firm, most of whom were still testing AI prototypes and had not started large-scale production of products, a significant barrier to entry in the AI universe.