Rahul Bhushan is the managing director at Ark Invest Europe. He believes that Palantir Technologies Inc. (NYSE: PLTR), will disrupt big tech giants such as Amazon, Microsoft and Google.
The majority of investments made in artificial intelligence has been directed towards chips and other hardware.
In an interview with CNBC today, Mr. He said that the companies that are software focused may be the ones who have the greatest value in this market.
Palantir’s stock has risen 150% in the past year. The Ark Innovation Fund’s flagship fund, Palantir is one of its top 10 stocks.
Palantir differs from its peers in the big tech sector
Palantir offers tailored solutions for its clients, giving it a significant edge over other tech giants.
New York listed firm consolidates data scattered around the organization.
Bhushan says that the system then uses artificial intelligence “to derive insights and make recommendations.”
Palantir Technologies shares are expected to remain resilient if US economic growth slows down in the next few months.
This is because most of the revenue comes from government and large companies, two customer types that are resilient in a difficult environment.
It’s also not as if PLTR has a lag in commercial activity.
Data analytics company Palantir forecasts a growth of up to 47% in commercial sales for the US in 2024. The stock of Palantir looks set to rise as the company’s management diversifies its customer base.
Palantir could reach $100 within a few short years
Palantir is also worth writing about as it recently became a member of the S&P 500, which traditionally drives interest from institutions in a particular stock.
Additionally, shares of the company based out of Denver, Colorado remain undervalued despite the massive year-to-date rally since they are still going for a forward price/earnings-to-growth multiple of significantly less than 1.
Hilary Kramer, a Greentech Research analyst, is incredibly bullish about the PLTR stock price. She expects that it will surpass $100 in the coming years.
Her prediction indicates that there is still potential to gain another 150% from this point, and the lack of a dividend yield more than compensates for it.
Palantir’s stock is unlikely to make you rich, or at least in the near future. But it will be a significant AI beneficiary, and one that has a strong commitment to growing its revenues, and to achieving profitable growth, to increase in price.
This article Can Palantir compete with big tech dominance? This post may change as new information becomes available
