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Palantir (PLTR) has been in a freefall over the past three weeks amidst concerns that President Donald Trump’s tariffs could lead to stickier inflation and an economic slowdown in 2025.
Plus, Trump’s administration announced plans to lower defense spending last month that also did not bode well for PLTR shares.
Still, Wedbush analyst Dan Ives remains convinced that the downside will prove short-lived and the recent selloff has created a buying opportunity in Palantir stock.
Shares of the big data analytics firm are down more than 35% versus their year-to-date high at the time of writing.
What Could Drive the Palantir Stock Price Up in 2025?
Dan Ives sees tariffs and the related economic uncertainty as only temporary concerns for Palantir stock. Longer term, company-specific catalysts will matter more, he told clients in a recent note.
Ives recommends investing in PLTR on the recent weakness as the AI revolution is in its early innings only.
Over the next three years, he expects big tech names to spend $2 trillion on artificial intelligence, all of which should serve as a tailwind for Palantir, given the company’s focus on integrating AI into its data analytics platform.
PLTR Shares to Soon Print a New All-Time High
Some investors were previously discouraged from buying PLTR shares due to valuation concerns.
But the multiple tied to them has come down rather significantly over the past few weeks, making the AI stock all the more exciting to own in 2025.
According to the Wedbush analyst, Palantir’s artificial intelligence offerings will unlock material upside and may help PLTR print a new all-time high in the back half of this year.
Additionally, the Federal Reserve could announce its next rate cut in May, helping ease concerns of a possible recession ahead, which may enable Palantir stock to recover in 2025, according to Fundstrat’s Tom Lee.
What Consensus Estimates Tell Us About Palantir
Investors should note, however, that not everyone on Wall Street is as bullish on PLTR as Ives.
The consensus rating on Palantir stock currently sits at “Hold” with the mean target of about $85 indicating potential upside of just 8% from current levels.
