On May 21, William Blair reiterated his holding rating of Palantir Technologies Inc. (NASDAQ:PLTR), a rating that has various factors related to the company's recent developments, with no target share price.
William Blair's Louie Dipalma still remains the same for PLTR, although the U.S. Department of Defense has specifically raised the contract cap for Palantir's MSS software license. This shows that as contracts increased from $480 million to $1.275 billion, the U.S. Combatant Command adopted strong adoption. This indicates that spending on MSS licenses continues to rise, with an average annual spending expected to be $272.5 million over the next four years.
Di Palma remains neutral on palantir, maintaining a balanced vision, taking into account the potential for growth and the risks that still exist. During the 2025 revenue call in the first quarter, the company mentioned that they expect spending to increase significantly this year due to investment in technical talent and AI production use cases.
Dipalma is focusing on company spending and adoption rates, which still need further clarification. The company has raised its full-year 2025 revenue guidance midpoint to $3.89 billion, indicating a 36% year-on-year increase. However, Dipalma's holding rating reflects a cautious approach to appreciate the company's prospects in defense contracts while observing financial data and awaiting further development.
Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys a software platform to assist in counter-terrorism investigations and operations. The company has created four major software platforms, including Gotham, Foundry, Apollo and Palantir Artificial Intelligence (API).
Although we acknowledge the potential growth of PLTR, our belief is that some AI stocks have higher returns and limited downside risks. If you are looking for more promising AI stocks than PLTR and have 100x upside potential, check out our report Cheapest AI stocks.
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