[Click eStock] Revenue Soars 93%... The Stock That Comes to Mind with Sovereign AI

There is an analysis suggesting that the stock price of Palantir, a U.S.-based artificial intelligence (AI) and data analytics company, will rise further.

On August 5, Hana Securities set its target price for Palantir at $193.14. Considering that Palantir’s stock price was in the $140 range during after-hours trading the previous day, this implies an upside potential of nearly 40%.

The company posted an earnings surprise in the second quarter of this year. Revenue reached $1.94 billion, up 93% year-on-year, marking its highest-ever growth rate. Jaeim Kim, an analyst at Hana Securities, explained, "U.S. commercial revenue came in at $760 million, a 149% increase during the same period, dispelling concerns about a slowdown in growth," adding, "Revenue from U.S. government contracts also grew by 90% to $810 million."

The growth momentum in the U.S. business is expected to continue. Kim noted, "The growing recognition of enterprise sovereign AI has created new demand, leading to U.S. commercial total contract value (TCV) of $2.13 billion," adding, "There is a growing awareness among enterprises of the need to maintain direct control over their data and security, and this trend is strengthening."

He continued, "Palantir’s AIP stack and its execution capabilities in FDE remain a source of competitive advantage, and the acceleration in growth is due to both the execution of existing U.S. government programs and new contract wins." He also cautioned, however, that "the stock price remains sluggish due to expectations of changing commercial demand amid competition with other AI model providers, as well as concerns over valuation pressure."

This content was produced with the assistance of AI translation services.