Palantir's AI Software Growth Exceeds 25% Annually, Phillip Securities Sees Major Upside with $208 Target

In a new analyst report drawing attention on Wall Street, Phillip Securities has initiated coverage of data analytics giant Palantir Technologies Inc. (NYSE: PLTR) with a Buy rating and a $208 price target. The firm highlighted Palantir's still-modest penetration of a vast total addressable market, with a key driver being its artificial intelligence software segment, which is growing at a rate exceeding 25% annually.

"We see Palantir's AI platforms, Gotham and Foundry, as central to the enterprise and government digital transformation," the Phillip Securities note stated. "The accelerated adoption of these tools, coupled with an expanding addressable market, positions the company for substantial upside."

Adding momentum to its AI capabilities, Palantir recently entered a strategic partnership with Innodata Inc. (NASDAQ: INOD). Announced on January 29, the deal will see Innodata provide high-quality training data and data engineering services. The collaboration is specifically aimed at enhancing Palantir's AI-powered rodeo analysis platforms. Innodata will handle the annotation and multimodal processing of thousands of hours of rodeo footage to train computer vision models to recognize animals, riders, skeletal joints, and generate automated performance metrics for events like bull riding and barrel racing.

Palantir's core business revolves around its sophisticated software platforms that enable governments and major corporations to integrate, analyze, and operationalize massive, disparate datasets. Leveraging advanced machine learning, its solutions are critical in sectors ranging from national defense and healthcare to finance and automotive manufacturing.

Market Voices: Analysts and Investors Weigh In

Michael Thorne, Portfolio Manager at Horizon Capital: "The Phillip Securities target is aggressive but underscores a valid point. Palantir has successfully transitioned from a government contractor to a broader commercial AI player. The 25%+ growth in its AI software isn't just a number; it's evidence of product-market fit in an era desperate for data clarity."

Rebecca Shaw, Tech Analyst at Clearwater Research: "While the AI narrative is strong, investors should scrutinize the sustainability of growth margins. Partnerships like the one with Innodata are smart for niche verticals, but the real test is scaling profitability across the entire commercial segment. The stock remains highly sentiment-driven."

David Keller, Independent Investor: "$208? That's pure fantasyland. This feels like another hype cycle puff piece. They partner to analyze rodeos? That's the 'substantial upside'? It's a distraction from the core issue: insane valuation and dilution. The company is constantly in the news but where's the consistent, market-beating earnings for shareholders?"

Arjun Mehta, Data Engineering Consultant: "The Innodata partnership is a fascinating case study in applied AI. Automating performance analysis in a complex, physical sport like rodeo demonstrates the flexibility of Palantir's Foundry platform. It's these unconventional use cases that often prove a technology's robustness before mainstream adoption."