The latest advances in artificial intelligence (AI) have created numerous buzz since early last 12 months. These next-generation algorithms’ ability to create original content, streamline processes, and increase productivity has businesses far and wide racing to capture their share of the resulting windfall.
One company uniquely positioned to money in on these secular tailwinds is Palantir Technologies (NYSE: PLTR). Its an extended time of experience developing AI helped the company pivot to embrace the demand for generative AI, and that move has been a boon to Palantir and its shareholders. Indeed, the stock has soared 477% because the beginning of 2023, fueled by improving results and the company’s expanding opportunity.
Over the past week, the good news has come fast and furious for Palantir. With loads happening, investors may not have caught all the recent developments. Listed below are 4 things Palantir investors can have missed this week.
1. Expanding its relationship with Nebraska Medicine
To kick off the week, Palantir announced an expansion of its pioneering partnership with Nebraska Medicine to advance healthcare using AI, resulting in a modern multiyear, multimillion-dollar contract.
Nebraska Medicine is an early adopter of Palantir’s Artificial Intelligence Program (AIP) and has “implemented greater than ten applications of AIP, improving patient throughput, expanding claims reimbursements, and better monitoring patient care.” It noted that AIP helped the health system to develop a modern workflow in lower than six weeks, with additional breakthroughs in as little as 90 minutes.
One example is the improvements to Nebraska Medicine’s Discharge Lounge, which has experienced a 2,000%+ increase in utilization. This reduced the time crucial to discharge patients by one hour, on average, freeing up bed space for other patients.
2. A strong vote of confidence
Analysts at Bank of America (BofA) Securities added Palantir to the firm’s US 1 list. To be included inside the list, a stock must be listed inside the U.S., have a buy rating, and be covered by the investment bank’s equity research analysts. The stock must actually have a mean daily trading volume of $5 million throughout the preceding six months. The list is imagined to represent BofA’s best investment ideas.
The analysts cited Palantir’s groundbreaking Warp-Speed platform, which was designed to integrate various points of manufacturing systems. It combines elements of enterprise resource planning (ERP), manufacturing execution systems (MES), product lifecycle management (PLM), programmable logic controllers (PLCs) for factory automation, and even input from employees on the factory floor.
The analysts described it as “a tool that may transform the American industrial base,” leading to its inclusion inside the list.
3. Expanding the Maven Smart System
Palantir announced that it had been awarded a contract by the DEVCOM Army Research Laboratory to expand its Maven Smart System across all branches of the military service, including the Army, Air Force, Space Force, Navy, and U.S. Marine Corps. Maven is an AI-based targeting tool that is a component of the National Geospatial-Intelligence Agency’s Maven AI framework. Palantir said it acts since the “connective tissue” between troops on the underside, battlefield sensors, hardware, and software.
The fixed-price contract may thoroughly be value as much as $99.8 million over the following five years and will improve the military services’ AI and machine learning capabilities.
4. Joining the S&P 500
Finally, Friday marked the last trading day before Palantir joined the S&P 500. The S&P might be probably the most well-known benchmark inside the country, made up of the five hundred largest corporations inside the U.S. As such, it’s also viewed as among the finest gauge of overall stock market performance.
Palantir will be added to the distinguished index when the market opens on Monday and is one amongst only 11 corporations to hitch its ranks so far this 12 months.
There could also be a strict set of criteria required to be added to the S&P 500, and Palantir has passed with flying colors.
While this might sound trivial, Bank of America analyst Mariana Pérez Mora calls it a “watershed moment.” The analyst believes there’s a “fundamental misunderstanding” concerning Palantir, and its addition to the widely followed index will force institutional investors to revisit what they think they know with regard to the AI pioneer. A greater grasp of what Palantir does and the essential opportunity ahead could help dispel those misunderstandings, increasing demand and driving the stock price even higher.
That’s the reason the analyst maintains a buy rating and Street-high $50 price goal on Palantir stock, which represents a possible upside of 34% — despite already notching gains of 477% since early last 12 months.
Given the business trajectory, the vast opportunity, and management’s consistent execution, I believe that price goal will end up being conservative.
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Bank of America is an promoting partner of The Ascent, a Motley Idiot company. Danny Vena has positions in Palantir Technologies. The Motley Idiot has positions in and recommends Bank of America and Palantir Technologies. The Motley Idiot has a disclosure policy.
4 Things Palantir Investors May Have Missed This Week was originally published by The Motley Idiot