Bull and Bear Clash on PLTR Stock

An analyst who's very bullish on Palantir Technologies (PLTR) stock, Wedbush Securities Dan Ives, and an analyst who's very bearish on the name, Jeffries' Brent Thill, clashed yesterday in the wake of the firm's first-quarter earnings report.

The analysts were speaking on CNBC.

Ives' Bullish Take

PLTR's Q1 results show that the company is "leading when it comes to the AI Revolution," Ives, a well-known tech analyst, said.

Palantir's market capitalization will exceed $1 trillion in the "next two to three years," Ives predicted.  Its current market cap is around $255 billion.

Thill's Bearish Take

Thill countered that no software stock that he has covered has ever been able to sustain the extremely high valuations at which Palantir Technologies (PLTR) stock currently trades. Even after sinking 12.5% in the wake of its earnings as of mid-morning on May 6, PLTR still has a gigantic forward price-to-earnings ratio of 232.5 times, according to Yahoo Finance.

Snowflake (SNOW) and Datadog (DDOG) are among the software makers that have previously been unable to sustain similar valuations, said Thill.

However, the analyst did also admit that Palantir Technologies (PLTR)'s fundamentals are strong.

While we acknowledge the potential of PLTR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.