Palantir is the gold standard of AI use cases, says Wedbush's Dan Ives

Core Viewpoint - The company is viewed as a gold standard in AI use cases, with high expectations from the analyst community regarding its valuation and growth potential [1] Company Performance - The US commercial business is projected to grow significantly, potentially reaching a valuation of $1 billion within the next 12 months, with free cash flow estimates increasing from $2-3 billion to $7-8 billion in the coming years [4] - Currently, 45% of the company's revenue comes from commercial sales, which is expected to drive valuation despite potential government spending challenges [4][5] Market Potential - The AI market is anticipated to reach a trillion-dollar market cap in the next two to three years, with the company involved in 70-80% of AI use cases [2] - The overall AI revolution is projected to see $3 trillion in spending, with 30-40% allocated to software, positioning the company as a key player among competitors like Snowflake, Salesforce, and Oracle [11][12] Investor Sentiment - Retail investors have shown strong engagement with the stock, often ahead of institutional investors, indicating a self-reinforcing enthusiasm for the company's growth story [6][7] - Institutional investors have historically been skeptical but are beginning to recognize the company's commercial potential and transformative capabilities in the software landscape [7][8] Financial Metrics - The company is currently valued at approximately $500 billion, with a free cash flow yield of 1.6%, comparable to Microsoft, suggesting that the market has priced in significant future growth [9][10]