Investing.com — Goldman Sachs has upgraded Palantir Technologies (NASDAQ: PLTR) from Neutral to Buy, establishing a 12-month price target of $230.00 that implies an 18% upside. Shares of the enterprise software giant closed yesterday at $194.12 and were indicated to open up 2.5% at $199.05 following the note. <\/p>\n
Before you buy NVIDIA: our AI model’s stock picks are beating the market by 120%+. See the list now \u00bb<\/a> <\/p>\n The bullish stance from analyst Gabriela Borges provides a major shot in the arm for Palantir bulls, who have continuously faced pushback from short sellers critical of the stock’s premium valuation\u2014a skeptical cohort that notably includes high-profile investor Michael Burry, who has maintained a short position against the company. <\/p>\n In her comprehensive report, Borges tackled the two most pressing debates facing Palantir at its current $8 billion revenue run rate and roughly 100% growth trajectory: whether the market has already priced in its AI opportunity, and whether its human-capital-intensive Forward Deployed Engineer (FDE) model can scale efficiently. On both fronts, Goldman Sachs concluded that the setup favors sustained growth. <\/p>\n Borges wrote that “our primary takeaway from our most recent set of industry conversations is that the stock is setting up for another phase of outperformance into 2027.” <\/p>\n Addressing the total addressable market, Borges noted that Palantir is experiencing a “step function change in depth,” driven by demand for sovereign AI, bespoke software development, and specialized vertical sales motions. As for the concerns surrounding the scaling of its workforce, she pushed back, arguing that the FDE model is “more than simply hiring FDEs; it requires tight feedback loops between field and product, which Palantir has perfected to the point of being able to automate via AI FDEs.” <\/p>\n Not finding the right stocks? Our AI’s list of investor-grade stock picks for October just dropped \u00bb<\/a> <\/p>\n Goldman Sachs highlighted a fundamental shift in how enterprises are adopting artificial intelligence, moving away from the broad experimentation with generic coding tools seen in 2025 and 2026. <\/p>\n “We believe enterprises are in the early stages of applying AI to their proprietary data to amplify their existing moats,” Borges wrote. This evolution closely aligns with the concept of “Sovereign AI” championed by Palantir CEO Alex Karp and echoed by Microsoft CEO Satya Nadella\u2014the idea that the number of frontier AI models should eventually match the number of distinct enterprises worldwide. While tech-heavy firms have the talent density to build in-house models, non-tech industries represent a massive, untapped market for Palantir. <\/p>\n To capture this specific demand, Palantir is expanding its organic sales momentum by securing marquee clients to serve as reference designs across key sectors. In the financial services sector, former AIG CEO Peter Zaffino is set to join Palantir in January 2027 to drive transformational growth across insurance, banking, asset management, and private equity. <\/p>\n Meanwhile, in the semiconductor space, NVIDIA has expanded its partnership to deploy Foundry and AIP across its own supply chain. Goldman views this as a critical benchmark that will allow Palantir to penetrate broader technology ecosystems across Asia. Additionally, a recent strategic partnership with Nebius names Palantir a preferred sovereign AI infrastructure provider, effectively opening doors across a universe of 20 to 80 scaled neocloud providers globally. <\/p>\n Underpinning this expansion is Palantir’s core Ontology architecture. Goldman Sachs expects the market for bespoke software to outgrow packaged software over the next one to three years. Rather than replacing core systems of record, enterprises are investing in platforms that bridge the white space between classic ERP, CRM, and HCM silos. Borges emphasized that the highest-ROI applications will come from software “tightly coupled to an enterprise’s proprietary data, workflows, and decision logic rather than ‘good enough’ horizontal workflows.” <\/p>\n Because Palantir’s Ontology maps raw datasets into real-world operational objects that both humans and autonomous agentic AI systems can act upon, the company is uniquely positioned to capture this shift. With Palantir stock underperforming the Nasdaq 100 year-to-date\u2014rising 16% versus the index’s 24%\u2014and trading at a discount to high-growth peers on an enterprise value-to-free cash flow basis, Goldman Sachs views the current levels as a highly attractive entry point for the next leg of AI expansion. <\/p>\n Original Article <\/p>\n Goldman Sachs sees 18% upside for Palantir on sovereign AI growth<\/a> <\/p>\n European shares drift to 4-month lows on mega-debt swaps, and French debt woes<\/a> <\/p>\n