UBS views accelerating demand tied to artificial intelligence and data spending as a key growth driver for Palantir going forward. The bank upgraded the software analytics company to buy from neutral. Analyst Karl Keirstead’s unchanged price target of $180 implies that shares of Palantir could rally 32% from their Thursday close of $135.94. “We … recommend that investors take advantage of this -35% move off the peak for the premier growth story in software and a company that is at the nexus of the two most powerful spending trends — AI and Data,” wrote Keirstead. “Accelerating growth stocks tend to work over time and Palantir deserves a material multiple premium given its leading position in three key growth areas — AI, data and modern defense tech.” PLTR 1Y mountain PLTR 1Y chart Keirstead added that shares of Palantir are current trading at around 50 times his estimates for the company’s free cash flow for 2027. Given that he estimates revenue growth of 70% in 2026 and stable mid-50% margins, Palantir stock looks very attractive at its current level, where many investors can make a strong valuation case for the stock, he wrote. This 70% revenue growth, Keirstead said, stems from “exceptional” demand, and Palantir is poised to be a clear AI winner. “Our latest checks [support] a view that Palantir is facing a very strong demand backdrop as it sits at the intersection of AI and data spend. As one partner said, ‘demand is exceptional.’ This investment ramp in AI models and data is occurring right now, with Palantir a clear AI winner,” he wrote. “In our view, it is very likely that investors come back to ‘AI winner’ stocks such as Palantir in 2026.” Shares of Palantir have tumbled 24% this year, although they are still trading up 60% over the past 12 months.