1 Unstoppable Artificial Intelligence (AI) Stock to Buy Before It Soars More Than 30% in 2026, According to a Wall Street Analyst

Core Viewpoint - Palantir Technologies has emerged as a significant player in the AI sector, with its stock performance reflecting a remarkable increase of over 2,400% in the last three years, positioning it among the most valuable technology companies globally [3][10]. Company Performance - Palantir's stock has been upgraded by Citigroup analyst Tyler Radke, with a new price target of $235, indicating a potential upside of 34% from the current price [3]. - The company has reported $3.6 billion in remaining performance obligations (RPOs), which is a 199% year-over-year increase in the U.S. commercial segment, highlighting strong future revenue potential [7]. Business Model and Growth Drivers - Palantir's business model is bolstered by multiyear contracts, which help secure customer loyalty and predict future growth through RPOs [6]. - The U.S. government, particularly the Department of Defense, is expected to drive significant growth in Palantir's public sector business, with forecasts suggesting at least 51% growth by 2026, potentially reaching 70% [8]. Market Position and Valuation - Palantir's market capitalization has surged to over $400 billion, surpassing the combined market cap of Salesforce and Adobe [10]. - The company's price-to-sales ratio stands at 115, indicating a premium valuation compared to its high-growth peers, which raises concerns about sustainability [13][16]. Strategic Partnerships - Palantir has secured several significant contracts, including a $10 billion enterprise service agreement with the U.S. Army and a $795 million expansion of its Maven Smart System agreement [11]. - The company is also collaborating with NATO allies to deploy its MSS platform, further enhancing its market presence [11].