Is Palantir Technologies Shares Heading For $100 Now That It Has Joined The S&P 500? 1 Wall Street analyst thinks so.

Palantir Technologies (PLTR -2.77%) was among the early beneficiaries of the accelerated adoption of artificial intelligence (AI) — and rightly so. The company’s AI solutions have gained traction among enterprise and government customers, fueling strong sales and profit growth. In another telling sign, Palantir recently joined S&P 500sending the stock up 25% within about two weeks of the announcement.

One Wall Street analyst believes this is just the beginning.

Next stop: $100?

In an interview on Fox News, Greentech Research analyst Hilary Kramer said that among AI stocks, “Palantir is my absolute 100% favorite,” noting that the company is a “true artificial intelligence company,” analyzing data to give companies “actionable decision making “.

The analyst continues to note that many of her peers continue to undervalue Palantir. Given the company’s strong revenue, profit growth and growing lag, investment banks will eventually have to step in and raise their estimates, opining that Palantir “could easily be” a top 100 stock. dollars.

I think the analyst hit the nail on the head. In the second quarter, Palantir’s revenue of $678 million rose 27% year-over-year, delivering adjusted earnings per share that rose 80% to $0.09.

The headliner was the company’s US commercial segment, as revenue of $159 million rose 55% and now represents 23% of Palantir’s total revenue. The segment’s number of customers increased by 83%, while the value of backlog — or contracts that have not yet been considered revenue — increased by 103%.

Palantir’s Artificial Intelligence Platform (AIP), its generative AI solution, is driving this robust growth. The company runs AIP bootcamps, pairing business and government customers with Palantir engineers to create solutions to real-world problems. This has helped drive the company’s recent growth.

In addition, management raised its full-year outlook for the second time. Palantir now expects annual revenue of $2.75 billion, up 23%.

Palantir stock boasts a forward price-to-earnings-growth (PEG) ratio of 0.36, when any number less than 1 is the standard for an undervalued stock.

That’s why Palantir stock remains a buy.