Though things appeared dire for Palantir (NYSE: PLTR) at the start of September as it was hit with the same downward pressure that saw the stock market erase more than $1 trillion in the first week of the month, the discussion surrounding the technology company has since turned bullish.
A major reason for the change in tune has been the announcement that PLTR is set to join the S&P 500 index on September 23, a move that is bound to both increase the stock’s visibility and cement its position as a major American corporation.
The milestone has already triggered a deluge of price target revisions, and Finbold elected to consult OpenAI’s brand new ChatGPT model – o1 – on where Palantir shares may stand at the tail end of 2024.
ChatGPT o1 sets Palantir stock price target for end of 2024
After leveraging the abilities of ChatGPT-4o and verifying the dataset it created to overcome the new AI version’s shortcoming – the o1 preview version has no access to the live web – Finbold discovered that OpenAI’s large language model (LLM) remains cautious about Palantir’s future.
On the one hand, the platform acknowledged the cybersecurity company’s many strengths, with its sustained revenue growth, lucrative private and government contracts, profitability, AI advancements, and inclusion in the S&P 500 being the most prominent.
Conversely, ChatGPT pointed toward market volatility, uncertain investor sentiment, and strong competition as potential limiting factors.
ChatGPT o1 outlines potential limiting factors for Palantir stock. Source: FInbold and ChatGPT o1
Ultimately, the AI concluded that PLTR shares are likely to be worth $40 at the end of the year.Â
Given that Palantir stock rose 122.39% since January 1 and 13.46% in the last 30 days, ChatGPT was asked if its forecast of a $4 rise across three and a half months for a company that is up $6 in just ten days is an underestimate.Â
The LLM conceded it may have been too cautious.
It then took into account the speed of PLTR stock’s recent rally and some analyst comments about the validation and prospects of the firm’s business model and concluded that $45 may be the more realistic year-end price target.
ChatGPT o1 revises its Palantir stock price target for end of 2024. Source: FInbold and ChatGPT o1
Analysts turn decisively bullish on Palantir stock
Indeed, on September 10, Bank of America’s (NYSE: BAC) Mariana Perez upgraded her 12-month forecast for Palantir shares from $30 to $50. In particular, Perez argued that PLTR’s future market is significantly underestimated.
She used a 1980 market analysis blunder, which had AT&T (NYSE: T) conclude – with the help of a hired consultancy firm – that the mobile phone market in the year 2,000 would amount to no more than 900,000 users – in actuality, it ended up climbing above 100 million to describe the current error in rating Palantir’s future.
Additionally, if PLTR stock’s recent performance is used as a measure, Bank of America’s and ChatGPT’s forecasts may soon prove too conservative.Â
Wedbush’s Dan Ives, for example, maintained a ‘buy’ rating for PLTR stock and a 12-month price target of $35 even when most other experts were neutral, and Palantir crossed above the forecast on September 12.Â
The stock now appears set to reach the same analyst’s more recent 12-month prediction of $38.
Palantir stock price chart
In fact, Palantir has been gaining significant bullish momentum in recent weeks. Along with its triple-digit rise in the last 12 months and strong 30-day rise, the last five days of trading have been especially strong, as PLTR surged 5.79%.
PLTR stock 30-day price chart. Source: Finbold
The most recent full trading day – Monday, September 16 – demonstrates the continuation of the uptrend. Palantir shares closed 2.02% in the green at $36.31, and the extended session propelled them another 1.57% up to $36.85 by press time on September 17.
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