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Archer Aviation (ACHR) says it has partnered with Palantir (PLTR) on AI-enabled aircraft manufacturing. Shares of the eVTOL company rallied nearly 10% on the news today.
Archer expects the strategic team up to drive innovation and improve the overall safety and efficiency of the aviation value chain.
“AI and software present an inflection point that will shape the future of aviation,” said Adam Goldstein, the chief executive of Archer Aviation in a press release on Thursday, March 13.
ACHR news is sitting well with Palantir investors as well, given the AI stock is up roughly 7% at the time of writing.
Is it Worth Buying Palantir Stock on ACHR News?
Palantir’s team up with Archer Aviation exemplifies the very transformative power of its AI solutions that has catalyzed a four-fold increase in its stock price over the past 12 months.
Despite a rich valuation, however, PLTR shares remain worth owning at current levels as the big data analytics firm is playing in a massive total addressable market.
According to McKinsey, the artificial intelligence software and services market valuation will soar from $85 billion in 2022 to as much as $1.5 trillion by the end of the next decade.
In fact, the firm’s bull case even sees that market hitting a valuation of $4.6 trillion by 2040.
PLTR Shares Could Climb All the Way Back to $125
Palantir stock has lost more than 30% amidst tariff-driven concerns of a recession ahead and President Donald Trump’s plans of lowering defense spending in the years ahead.
But these concerns will prove temporary and the company’s AI offerings will continue to drive significant further upside in PLTR moving forward, according to Loop Capital analyst Mark Schappel.
Schappel’s “Buy” rating on Palantir shares comes with a $125 price target that indicates potential upside of more than 40% from here.
Loop Capital remains bullish on PLTR stock as the company’s artificial intelligence platform (AIP) “essentially sells itself” and its user interface and deep capabilities suggest “Palantir is setting the agenda in enterprise AI.”
Wall Street Recommends Caution on Palantir
Other Wall Street analysts, however, recommend caution on Palantir stock amidst concerns of an economic slowdown and a potential decline in defense spending.
The consensus “Hold” rating on PLTR shares is tied to a mean target of about $85 at writing, which indicates potential downside of about 1% from current levels.
