Analyst who bought Palantir stock before a 600% rally updates price target

The bogus intelligence enhance has been a sport changer, helping many tech stocks, collectively with Palantir Technologies, ship mouth-watering returns.

While the S&P 500's 24% return in 2024 is impressive, it pales compared with the 340% return for Palantir's shares. More very good, whereas the S&P 500 has slumped 3% in 2025, Palantir's stock tag is up 63%—a excellent accomplishment given this year's tariff-pushed volatility.

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Palantir's success likely stunned many folk, but Wall Avenue dilapidated analyst and dealer Stephen Guilfoyle wasn't amongst them.

Guilfoyle picked up shares in 2023 when they were about $16, and he's as it will likely be banged the drum on Palantir's potential ever since, collectively with earlier this year when he attach a $122 tag plot.

Palantir reached that plot on May 2, prompting Guilfoyle to change his outlook, collectively with a brand new tag plot investors must take observe of given his previous success.

Palantir's rides a tsunami of AI process

Guilfoyle purchased Palantir stock in 2023 attributable to its real, debt-free balance sheet, free cash scurry, and sure earnings potential.

The outlook for the Peter-Thiel-based company, which CEO Alex Karp runs, has improved a long way more since then.

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After OpenAI's ChatGPT became the quickest app to succeed in a single million customers following its open in December 2022, there has been a flood of hobby in rising AI chatbots and agentic AI applications throughout most industries.

Banks are deploying AI applications to hedge dangers, review loans, and fee merchandise. Drugmakers are excited by its use to foretell drug targets and clinical trial outcomes. Producers are seeing if it will enhance production and quality. AI may moreover reduction outlets forecast inquire, attach up inventories, and curb theft. The U.S. militia is even attempting out AI's use on the battlefield.

AI's use cases appear boundless, prompting many companies and governments to leverage Palantir's deep expertise in managing and protecting info to reduction put collectively and proceed new AI apps.

Palantir (PLTR) began by helping the U.S. executive win counterterrorism systems. Its Gotham platform assists governments in those efforts at the moment. The company also sells alternatives to administer, account for, and file info to colossal companies throughout endeavor and cloud networks.

Its expertise managing and securing info has positioned it perfectly to reduction customers win colossal language devices and other AI alternatives using its AI platform (AIP).

"The inquire for AIP is in incompatibility to the relaxation now we beget seen within the previous twenty years," acknowledged CEO Alan Karp in 2023.

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He wasn't kidding. Quiz for AIP alternatives has skyrocketed, riding Palantir's income, earnings, and stock tag elevated.

"We closed a file-atmosphere quantity of deals in Q4, collectively with 32 deals worth $10 million or more. Our U.S. industry is on the forefront of the AI revolution, rising 52% year-over-year in Q4," acknowledged Karp on Palantir's fourth-quarter earnings conference name.

In that quarter, income rose 36% year-over-year, bringing full-year development to 29%. It also made the soar to profitability in 2024, reporting adjusted earnings per portion of seven cents and entire-year EPS of $0.41. It produced $1.25 billion in adjusted free cash scurry in 2024.

Those results clearly validated Guifoyle's bullish thesis in 2023, and his optimistic take on shares when he picked Palantir as his accepted stock in 2024, his single best stock decide 365 days ago, and made it his accepted stock for 2025 in December.

Palantir retreats before rocketing elevated in April

The rapid upward push of AI closing year incorporated the most learn and pattern and IT infrastructure process and spending since the Web enhance.

The jog of process became so rapid that many petrified that inquire became being pulled forward, likely causing a retrenchment in spending this year. Those concerns were amplified by stories of Microsoft and Amazon rethinking their info center buildout plans and the open of elevated-than-expected tariffs by the Trump administration, elevating recession dangers.

That backdrop prompted Palantir's shares to retreat vastly. On the other hand, the corporate's stock has rocketed since April 9, when President Trump paused the implementation of reciprocal tariffs for 90 days, kickstarting a well-known stock market rally.

The volatility in its shares has created a great deal of buy and sell opportunities over the final year.

"I am taking a look for PLTR for myself, for my youngsters, and for future generations of Guilfoyles. I really beget since shaved my lengthy fairness set apart at plot prices when met and reloaded a long way more shares than I had sold on selloff," acknowledged Guilfoyle in a TheStreet Pro put up. "I sold shares with a $113 take care of in February and acquired assist two and a half times the amount of shares sold from $102 accurate down to $68. The stock bottomed at $66.12 on April 7."

His early April buys beget panned out effectively, and shares beget now eclipsed his $122 tag plot.

Guilfoyle says he'll sell a pair of of his shares to lock within the most up-to-date good points, but Palantir remains a lengthy-duration of time keeping, and his new tag plot is vastly elevated.

"We will feel rather silly if a stock trades at our plot, in particular before a identified new match, after which sells off," acknowledged Guilfoyle. "I will homicide a small sale with the expectation that I shall be in a group apart to within the future add what I sold plus presumably a small more at a lower tag."

Guilfoyle thinks Palantir stock may climb vastly on its subsequent leg elevated.

"My new $153 plot tag is now the very best plot tag for this name on Wall Avenue by a gigantic margin," acknowledged Guilfoyle.

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