Bank of America Still Thinks Palantir Is One of the Best Stocks to Buy for 2026

Group 1 - Palantir Technologies has been reaffirmed as a top pick by Bank of America for 2026, indicating a shift in investor sentiment despite its volatile performance and high valuation multiples [1] - The company is transitioning from being perceived solely as an AI narrative stock to one that demonstrates operating leverage, with increasing enterprise adoption of its Artificial Intelligence Platform (AIP) [2] - Government spending on Palantir's software remains robust, and the company's profitability metrics are improving at rates that outpace many larger-cap software peers [2] Group 2 - Palantir Technologies, founded in 2003 and based in Denver, specializes in software platforms for data integration, analysis, and operation, with flagship products including Gotham, Foundry, and AIP [3] - The stock has experienced significant volatility over the past 52 weeks, trading between a low of $66.12 and a high of $207.52, with a weighted alpha of +73.7, indicating strong performance relative to the market [4] - The company has a market capitalization of approximately $404 billion, solidifying its status as a large-cap player in the technology sector [3] Group 3 - Valuation remains a contentious issue, with Palantir's price-to-forward-earnings ratio at 209 times and trading at over 110 times revenue, which are high compared to industry averages [5] - Despite high multiples, the company's profitability is validated by a 33% GAAP operating margin, an adjusted operating margin of 51%, and a profit margin exceeding 16% [5]