Palantir Stock Surges 10% After Wedbush Upgrades PLTR Forecast on AI Optimism

Palantir Technologies Inc. (PLTR) shares jumped nearly 10% to start the week after Wedbush analysts upgraded their price target, citing artificial intelligence as a key growth driver. The bullish call helped fuel a broader tech sector rebound, with Wedbush predicting 8-10% gains for select software stocks through year-end.

The firm raised earnings estimates for Palantir and Nvidia (NVDA), anticipating increased AI infrastructure spending across big tech. This comes despite concerns about excessive AI investments dampening returns at companies like Meta Platforms. Palantir's stronger-than-expected Q3 results—featuring double-digit revenue growth and raised guidance—have bolstered investor confidence in its AI monetization strategy.

Wedbush's projection hinges on an expected surge in tech capital expenditures for 2025. While some analysts warn of AI spending outstripping returns, Palantir and Amazon have demonstrated an ability to convert AI investments into performance, making them preferred upgrades in the current market cycle.