Palantir's valuation potentially reaching a monumental $1 trillion aprises in Wedbush's predictions. The question remains: should investors seize the opportunity and purchase PLTR stocks at the current moment?
In a bold prediction, Dan Ives, a senior analyst at Wedbush, has stated that Palantir, a leading AI technology company, is on a plausible path to exceed a market cap of $1 trillion within the next three years. This growth would represent more than 100% increase from its current market cap of approximately $430 billion.
Ives's optimism is rooted in the company's exceptional growth in AI-related commercial revenue, driven by the ongoing AI revolution. He believes that Palantir's AI Platform (AIP) U.S. commercial business could surpass $1 billion in revenue in the coming years, significantly boosting the company's valuation.
This forecast follows a strong Q2 performance for Palantir, which reported a blowout quarter and raised its full-year guidance. The robust demand for Palantir's artificial intelligence offerings was cited as a key reason for the success.
Palantir's stock has surged dramatically since late 2022, with revenue expected to grow over 34% annually for the next five years according to Wall Street forecasts. To reach a $1 trillion market cap at current valuation multiples (around 91 times forward sales), Palantir would need to grow revenue to about $11 billion annually—a trajectory that, given its current growth, could be achievable by 2027-2028.
However, it's important to note that not all analysts share Ives's optimism. Many on Wall Street recommend steering clear of Palantir stock due to valuation concerns. The current forward price-earnings (P/E) ratio for Palantir shares is more than 450x, which some consider high. The mean target for PLTR shares is roughly $147, indicating a potential downside of more than 20% from current levels.
The consensus rating on PLTR shares is "Hold", reflecting the mixed outlook. Despite this, Ives remains confident in Palantir's long-term prospects, stating that it is "obliterating" the "Rule of 40", a benchmark for software companies that measures revenue growth against operating margins.
Palantir is uniquely positioned to benefit from sovereign AI demand and its commercial segment is growing at an exceptional rate. Ives compared Palantir stock to Lionel Messi in AI, suggesting it outperforms other companies in the tech sphere.
As of mid-2025, Palantir’s market cap is around $375 billion, so reaching $1 trillion would mean nearly tripling its size in the next 2-3 years. This growth would position Palantir as a top winner in the ongoing AI revolution, boosting confidence in a potential $1 trillion valuation, although caution remains over valuation volatility and competition from large tech firms.
Palantir stock has delivered some 2,000% gains since early 2023, closing higher on Friday. Dan Ives recently raised his price target on PLTR to $200, indicating potential upside of 7% from current levels. Despite the mixed outlook, Ives recommends owning Palantir stock for the long term due to its strong growth prospects in the AI sector.
Investors looking at Palantir could find opportunities in the AI sector, given Dan Ives's prediction that the company's exceptional growth in AI-related commercial revenue might propel it to surpass $1 billion in revenue, significantly boosting its valuation. Palantir's stock, already surging dramatically, could potentially reach $1 trillion in market cap by 2027-2028, if it grows revenue to about $11 billion annually, as suggested by Wall Street forecasts.
