Palantir jumps 10% on Bank of America upgrade to $255

Palantir Technologies surged 10.3% to close at $172.01 on Wednesday after Bank of America upgraded the AI software company and raised its price target to $255. The jump added to Palantir’s gains from its strong earnings report earlier in the week, sending trading volume to 76.2 million shares—about 75% above the three-month average.

The rally reflects growing investor confidence in AI-driven enterprise software as companies chase productivity gains from data analytics and machine learning. Palantir, which went public in 2020 and has gained 1,711% since then, continues to benefit from rising demand for AI tools that help businesses extract insights from complex datasets. While the S&P 500 edged up 0.62% and the Nasdaq Composite rose 1.30%, Palantir outpaced peers like Snowflake (up 3.93%) and Datadog (up 2.02%), underscoring its momentum in the AI software space.

Bank of America’s upgrade was a key catalyst, citing Palantir’s “competitive edge through its strong AI strategy, growing commercial activities, and solid government relationships.” Analyst Mariana Perez Mora highlighted the company’s ability to deliver “meaningful outcomes” for clients through AI-driven solutions. The price target hike suggests Palantir could gain nearly 50% from its closing price, reinforcing its status as a high-growth player in enterprise AI.

The surge comes even as some analysts warn of volatility in AI stocks, with The Motley Fool’s Stock Advisor service recently naming 10 top stock picks—excluding Palantir. Still, Palantir’s rapid growth and expanding commercial contracts underpin its appeal, especially as more businesses invest in AI to streamline operations. With AI spending expected to keep rising, Palantir’s next earnings report and contract wins will be closely watched for signs of sustained momentum.