Wedbush analyst Dan Ives has repeatedly said that we are still early into the AI boom — especially when asked about whether AI is a bubble. That extreme positioning perfectly encapsulates the sentiment in the market these days. Market commentary often calls out the AI trade as risky and possibly in bubble territory, but Ives has been bullish on AI since the beginning.
Recently, Ives was asked about his favorite stock outside of the “Magnificent Seven,” and his answer was a company that he’s been talking about a lot over the past few years: Palantir (PLTR). Palantir is positioned as the software layer of AI. As hyperscalers spend billions on AI infrastructure, Palantir can comfortably sit on top of that spending and capture the usage layer. Since AI infrastructure spending isn’t showing any signs of slowing down, it can be reasonably concluded that Palantir’s bull thesis hasn’t fully played out.
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Palantir has also shown impressive growth, gaining exposure to both enterprise and government AI spending. Through its Artificial Intelligence Platform (AIP), it has been able to monetize AI better than many other companies out there. In fact, while others are drowning in AI spending, Palantir continues to be one of the few firms able to reliably measure the ROI on its own AI investments.
About Palantir Technologies Stock
Palantir Technologies is a software company that develops and deploys data integration and analytics platforms for government agencies, defense organizations, and enterprise clients. The company operates both across the United States and internationally, with notable products like Gotham, Foundry, Apollo, and AIP.
PLTR stock has had two incredible back-to-back years but is down more than 17% so far in 2026. This move is unsurprising considering how the focus has recently shifted back to hardware and energy stocks. While the software downturn hasn’t helped, PLTR stock’s valuation had become stretched anyway.
What the recent poor stock performance now means is that PLTR stock isn’t valued as highly as it was previously. In fact, the stock is trading below its five-year average on various metrics, although its multiples are still quite high. For example, the forward price-to-earnings (P/E) ratio is 132 times. Wall Street also continues to revise the company’s next three-year earnings forecast upward, which makes the valuation even more attractive.
