Goldman Sachs Just Upgraded Palantir Stock. Here's Why

Palantir Technologies (PLTR) stock is extending gains on Thursday after Goldman Sachs upgraded the artificial intelligence (AI) software company to “Buy.” In her research report, analyst Gabriela Borges said PLTR’s total addressable market (TAM) could expand significantly as demand for sovereign AI and customized software accelerates.

Including today’s gains, Palantir shares are up about 10% versus the start of this year. 

Goldman Sachs’s Bullish View on Palantir Stock

Borges believes PLTR stock could be entering another phase of outperformance into 2027 as the company’s TAM undergoes what she described as a potential “step function change in depth.” The analyst identified three key drivers: sovereign artificial intelligence, bespoke applications, and Palantir’s newer verticalization strategy. 

Governments and businesses increasingly want AI systems that keep proprietary data and decision-making within their own jurisdictions, creating an opportunity for Palantir’s software. At the same time, enterprises are moving beyond generic AI tools toward customized applications tied directly to their workflows and proprietary data, she told clients.

Goldman expects bespoke software to outgrow packaged software over the next one to three years, potentially expanding the opportunity for the firm’s Ontology-based platform.

Why Else Does Borges Expect PLTR Shares to Rip Higher?

Borges also pushed back against concerns that Palantir’s forward-deployed engineer model could become difficult to scale. She argues that the model isn’t just about adding more engineers, but about creating tight feedback loops between the company’s field teams and product organization. 

Borges said Palantir has perfected this process to the point where it can increasingly be automated through AI engineers. 

Goldman Sachs also believes enterprises remain in the early stages of applying AI to proprietary data to strengthen their competitive advantages, particularly in industries with lower tech talent density. 

Its $230 price target on Palantir shares is largely based on this opportunity to bring customized AI capabilities to sectors that may struggle to develop them internally. 

What’s the Consensus Rating on Palantir?

Other Wall Street firms are not nearly as constructive on PLTR shares as Goldman Sachs. 

While the consensus rating on Palantir Technologies remains at “Moderate Buy,” the mean target of nearly $202 is roughly in line with the price at which it’s trading already. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.