Todd Campbell

Sun, Jun 8, 2025, 2:56 PM4 min read

Veteran fund manager reboots Palantir stock price target originally appeared on TheStreet.

There's been a lot of debate surrounding artificial intelligence stocks this year.

A boom in AI spending, particularly by hyperscalers ramping infrastructure to meet surging research and development of chatbots and agentic AI, led to eye-popping returns for companies like Palantir Technologies, which markets data analytics platforms.

However, concern that spending could decelerate has picked up in 2025 because of worry over a tariffs-driven recession, causing many AI stocks like chip-maker Nvidia to stumble.

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While the eventual impact of tariffs on recession remains a question mark, there's been little to suggest demand for Palantir's services is slipping. Solid first-quarter earnings results and optimism that trade deals could make tariffs manageable have helped Palantir shares rally 63% this year after a 340% surge in 2024.

Palantir's resiliency isn't lost on long-time money manager Chris Versace. Versace, who first picked up shares last year, recently updated his price target as Palantir's stock challenges all-time highs.

Investors' interest in Palantir stock swelled after OpenAI's ChatGPT became the fastest app to reach one million users when it was launched in December 2022.

ChatGPT's success has spawned the development of rival large language models, including Google's Gemini, and a wave of interest in agentic AI programs that can augment, and in some cases, replace traditional workers.

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The activity is widespread across most industries. Banks are using AI to hedge risks, evaluate loans, and price products. Drugmakers are researching AI's ability to predict drug targets and improve clinical trial outcomes. Manufacturers are using it to boost production and quality. Retailers are using it to forecast demand, manage inventories, and curb theft. The U.S. military is even seeing if AI can be effective on the battlefield.

The seemingly boundless use cases — and the ability to profit from them — have many companies and governments turning to Palantir's deep expertise in managing and protecting data to train and run new AI apps.

Palantir got its start helping the U.S. government build counterterrorism systems. Its Gotham platform still assists governments in those efforts today. It also markets its Foundry platform to manage, interpret, and report data to large companies across enterprise and cloud networks. And its AI platform (AIP) is sold as a tool for developing AI chatbots and apps.