Goldman Sachs lifts Palantir target to $230 on AI demand

Goldman Sachs upgraded Palantir Technologies from Neutral to Buy on Thursday, establishing a 12-month price target of $230.00. The target implies an 18% upside from the previous close of $194.12. Shares were indicated to open up 2.5% at $199.05 following the research note.

Analyst Gabriela Borges noted that Palantir is setting up for sustained outperformance into 2027. Palantir currently operates at an $8 billion revenue run rate with a growth trajectory of roughly 100%. Borges addressed investor debates regarding valuation and the scalability of its Forward Deployed Engineer model, arguing that tight feedback loops between field and product now allow Palantir to automate processes via artificial intelligence.

Goldman Sachs highlighted enterprise demand for sovereign AI, bespoke software development, and proprietary data applications. Palantir CEO Alex Karp has championed the sovereign AI concept alongside industry peers such as Microsoft CEO Satya Nadella. To support enterprise expansion, former AIG CEO Peter Zaffino will join Palantir in January 2027 to lead efforts across insurance, banking, asset management, and private equity.

The bank also pointed to commercial momentum through expanded partnerships. Nvidia expanded its partnership to deploy Palantir's Foundry and AIP across its supply chain, while a partnership with Nebius positions Palantir as a preferred sovereign AI infrastructure provider across a network of 20 to 80 scaled neocloud providers. Year to date, Palantir shares have risen 16%, trailing the Nasdaq 100 advance of 24%.