Why Palantirs AI-Driven Growth Has Analysts Divided on the Stock [Video]

Palantir Technologies (PLTR) shares soared in intraday trading Tuesday, a day after the company’s earnings beat, driven by “unbridled demand” for its Artificial Intelligence Platform (AIP).

Shares of Palantir were up over 11% at $26.79 as of 3 p.m. ET Tuesday, contributing to the stock’s over 56% year-to-date gain.

Some analysts lifted their price targets for the stock based on the company’s quarterly results. However, others raised concerns about the sustainability of recent growth.

Wedbush analysts lifted their price target for the stock to $38 from $35, calling Palantir’s latest update a “game changer quarter” with AIP monetization as a “major growth driver.”

They said Palantir “saw unprecedented demand for its AI solutions across both commercial and government landscapes by taking AI solutions that solve meaningful problems across organizations at enterprise scale.”

Citi analysts said they “expect shares to trade up significantly as the accelerating revenue and magnitude of top-line outperformance are especially …