Palantir Technologies Inc. (NASDAQ:PLTR) has been identified as one of the top 15 best performing AI stocks heading into 2026, according to a recent report by Freedom Capital Markets. The company recently saw its price target increased from $125 to $170, despite maintaining a Sell rating. This update came on the heels of Palantir’s Q3 2025 results, which surpassed both guidance and market expectations.
In its Q3 report, Palantir reported strong growth in its US Commercial segment, although its European operations remained flat. The company’s management also provided guidance for Q4 above market expectations and increased its full-year 2025 outlook. Analysts at Freedom Capital noted potential risks for Palantir in 2026, including a possible slowdown in US Commercial growth, pressure on defense budgets, and margin challenges due to investments in hiring for AI initiatives.
On November 4, Morgan Stanley also raised its price target on Palantir from $155 to $205 while maintaining an Equal Weight rating. The firm’s analyst highlighted the company’s ninth consecutive quarter of accelerated growth, with momentum expected to continue based on Q4 guidance and strong new business bookings in Q3.
Palantir Technologies Inc. is an American software company specializing in big data analytics and AI platforms, serving key government and commercial enterprises. While the company shows promise as an investment, some AI stocks may offer greater upside potential with less downside risk. For investors seeking undervalued AI stocks, a free report on the best short-term AI stock is available.
In conclusion, Palantir Technologies Inc. continues to demonstrate strong growth and innovation in the AI sector. Investors should consider the company’s potential alongside other opportunities in the market to make informed investment decisions. This article was originally published on Insider Monkey and does not contain any specific disclosures.
