The tech sell-off is a buying opportunity, says Wedbush's Dan Ives

Market Performance & Valuation - Palantir's stock experienced its longest losing streak since April 2024, down nearly 18% from its recent record high [1] - Wedbush views the pullback as a buying opportunity, maintaining a bullish outlook on the tech sector for at least another two to three years [1][2] - Wedbush predicts Palantir could reach a $1 trillion market cap in the next two to four years [3][4] Revenue & Growth - To justify a $1 trillion valuation, Palantir's revenue needs to reach $12 billion to $20 billion in the next three to four years, with free cash flow margins potentially reaching 40% to 50% [5] - Palantir could capture 20% to 30% of the $2 trillion to $3 trillion expected to be spent in the sector [6] Business Strategy & Opportunities - Palantir's government revenue, currently 55% with the bulk from the USA, has been a tailwind, establishing them as a leader in AI [7] - The commercial side of the business will drive valuation, with sovereign opportunities also contributing to growth [8] - Enterprise AI adoption is still in early stages, with only 4% of US enterprises having explored it, presenting significant growth potential in Europe and Asia [10] Risk Profile - Palantir has a high-risk profile, with the stock susceptible to significant drops if any setbacks occur [12] - Strong demand, estimated at 10 to 15 times supply, supports the long-term vision of Palantir becoming a $1 trillion company [12]