DA Davidson raises Palantir stock price target on AI sovereignty push

DA Davidson has increased its price target for Palantir Technologies Inc. (PLTR) stock to $250, up from $200, while keeping a Buy rating. The firm praised Palantir's AIPCon11 conference, which centered on AI sovereignty and appears to be gaining customer interest. DA Davidson believes the company has a long runway ahead due to its push into data sovereignty, which is resonating with customers as they become more discerning about AI model selection and management.

The company has demonstrated impressive financials, with 79% revenue growth and an impressive 85% gross profit margin. Palantir recently secured a supply management system for NVIDIA, built using Nemotron, which the firm sees as addressing a significant challenge for the chipmaker. Analysts have shown increased optimism, with 22 analysts raising their earnings forecasts for the upcoming period.

Palantir's market cap stands at $399 billion. The firm recommends deeper investigation with its Pro Research Reports covering 1,400+ US equities, providing actionable insights for investors. Palantir recently reported stronger-than-expected Q2 2026 results, surpassing FactSet consensus by 6.8% in revenue, with operating income and margin exceeding estimates by 10.5%.

Analysts have also highlighted Palantir's expansion of the Maven Smart System contract with the Pentagon, which could reach a billion-dollar annual revenue run-rate. The company maintains an Outperform rating, emphasizing Palantir's AI capabilities demonstrated in a recent technology demo.