Palantir Technologies, the data analytics and AI software company, saw its shares rise more than 3% on Thursday after Goldman Sachs upgraded the stock to 'buy' from 'neutral'.
The investment bank said Palantir is experiencing a step change in its addressable market, driven by demand for sovereign AI, bespoke software development and specialised industry deployments.
Sovereign AI refers to AI systems built around a country's or organisation's own data and infrastructure, rather than relying on shared commercial platforms.
Goldman said recent industry conversations indicated the stock was positioned for another phase of outperformance into 2027, supporting a more bullish view on the company's growth trajectory.
Organising data
Central to the upgrade is Palantir's Ontology technology, which organises enterprise data and processes in a way that can embed the company's software deeply into customer operations, potentially giving it an advantage over conventional seat-based software platforms.
Goldman's report also addresses longstanding questions about whether Palantir's Forward Deployed Engineer model, in which engineers work closely with customers on tailored implementations, can scale as the business grows.
The company is currently running at an annualised revenue rate of around $8 billion and has been growing at roughly 100%.
