Hindsight, as they are saying, is 20/20. While it’s simple to research the previous, predicting the longer term is far tougher. This couldn’t be more true for Nvidia (NASDAQ:NVDA), leaving numerous traders kicking themselves for not recognizing the AI unicorn earlier than it skyrocketed into the stratosphere.
Could Palantir (NYSE:PLTR) be the following AI-inspired development story to observe in Nvidia’s footsteps? Top investor James Foord thinks it simply may be.
“Palantir’s unique technology, large addressable market, and potential for margin expansion position it similarly to NVIDIA’s pre-AI revolution phase,” writes Foord, who sits within the high 4% of all TipRanks’ inventory professionals.
Foord acknowledges that opinions on Palantir are divided, noting that conventional metrics may certainly counsel the massive knowledge analytics firm is overvalued. However, the investor additionally sees vital potential, believing that PLTR inventory’s triple-digit development over the previous yr could also be removed from reaching its peak.
“With a potential target price of $100, Palantir could more than double, reflecting its unappreciated potential and substantial market opportunity,” writes Foord.
Foord describes quite a lot of similarities between NVDA in 2020 and PLTR at current to assist this bullish outlook, comparable to a singular expertise, a mammoth potential market, and the flexibility to develop its margins dramatically.
“Like NVIDIA, Palantir has been waiting decades for this moment,” argues Foord, including that PLTR’s skill to assist organizations “create digital assets from real-world business models’ positions it perfectly to unleash the full power of AI.”
Assuming that PLTR captures even a small portion of the estimated $500 billion enterprise software program market, in keeping with Foord, this might nonetheless result in $11.5 billion in annual revenues by the latter a part of the last decade. The investor additionally believes that PLTR will reach rising its working margins to 60% as revenues develop.
“Yes, this is very bullish, but it is possible,” says Foord. “Analysts can’t predict moves like this. They didn’t with NVIDIA and they won’t with Palantir.”
The investor does qualify this optimistic sentiment, nonetheless, score PLTR shares a Buy. (To watch Foord’s monitor report, click on right here)
Palantir sparks combined opinions on Wall Street, mirrored in 4 Buy, 6 Hold, and 6 Sell scores, all coalescing to a Hold consensus view. With a 12-month common worth goal of $27.67, the inventory is projected to drop ~32% over the following yr. (See PLTR inventory forecast)
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Disclaimer: The opinions expressed on this article are solely these of the featured investor. The content material is meant for use for informational functions solely. It is essential to do your individual evaluation earlier than making any funding.
