Goldman Sachs Upgrades Palantir to Buy, Citing AI Growth Potential

Goldman Sachs has upgraded Palantir Technologies to buy from neutral, setting a 12‑month price target of $230, which implies roughly an 18% upside from the recent closing price. Analyst Gabriela Borges noted that the total addressable market for sovereign AI and bespoke applications may be undergoing a significant expansion, with Palantir well positioned to capitalize on this shift. She highlighted Palantir’s forward‑deployed engineering model, which creates tight feedback loops between field operations and product development, enabling the company to automate AI-driven engineering tasks more effectively than competitors. Borges added that enterprises are still in the early stages of integrating AI into their proprietary data, a trend that should drive substantial upside for Palantir, especially in industries with limited in‑house tech talent. She pointed to emerging AI initiatives at software firms such as CrowdStrike’s SafeMind model and Datadog’s Adaptive ML forecasting as early indicators of broader adoption. The upgrade aligns with the broader analyst consensus, as 23 of the 33 covering Palantir currently hold buy or strong‑buy ratings. Shares of Palantir have risen about 47% over the past three months.

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