William Blair Reiterates Hold Rating on Palantir Technologies (PLTR) Stock

On May 21, William Blair reiterated its Hold Rating on Palantir Technologies Inc. (NASDAQ:PLTR), without a price target, due to various factors linked to the company’s recent developments.

Louie DiPalma from William Blair keeps his rating on PLTR despite the U.S. Department of Defense notably raising the contract ceiling for Palantir’s MSS software licenses. This indicates robust adoption by the U.S. Combatant Commands as the contract increased from $480 million to $1.275 billion. This suggests a continued rise in spending on MSS licenses, with an average annual spending anticipated at $272.5 million over the next four years.

DiPalma remains neutral on Palantir, keeping a balanced view, considering both the potential for growth and the risks that remain. During the Q1 2025 earnings call, the company mentioned that they expect a significant increase in expenses this year due to investments in technical talent and AI production use cases.

DiPalma is keeping an eye on the spending and adoption rates of the company, which are still subject to further clarification. The company has raised its full-year 2025 revenue guidance midpoint to around $3.89 billion, indicating a 36% growth year-over-year. However, DiPalma’s Hold rating reflects a cautious approach, admiring the company’s promising prospects in defense contracts while observing the financial data and waiting for further developments.

Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms to assist in counterterrorism investigations and operations. The company has created four principal software platforms, including Gotham, Foundry, Apollo, and Palantir Artificial Intelligence (API).

While we acknowledge the potential of PLTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure. None.