Palantir's A.I. ambitions divide analysts. A bull and bear make their cases

Palantir Technologies raised its yearly gross people connected Monday arsenic it sees an accidental to commercialize AI, but not each analysts are convinced.

On Monday, CEO Alex Karp said Palantir's aim is to marque wealth from AI, alternatively of simply producing tools that constitute computer-generated poetry. Some companies person restricted their employees from utilizing specified tools similar OpenAI's ChatGPT.

"We volition fig retired however to monetize it," Karp said, referring to Palantir's artificial quality platform, oregon AIP. According to the company's website, AIP volition let businesses arsenic good arsenic defence and subject organizations to pat ample connection models and AI to assistance successful decision-making.

Dan Ives, managing manager astatine Wedbush Securities, is bullish connected Palantir's AI ambitions. On Monday, the steadfast said "a prima is born," referring to AIP.

"That's astir apt the champion axenic play AI name, successful presumption of them monetizing not conscionable connected the authorities side, but connected the endeavor broadside erstwhile it comes to AI," said Ives connected CNBC's "Street Signs Asia" connected Tuesday. Palantir precocious announced it was awarded a five-year contract worthy up to $463 cardinal from the U.S. Special Operations Command.

"And I deliberation we saw this arsenic an inflection constituent quarter, wherever this remains, successful our opinion, 1 of the halfway AI names implicit the coming years," said Ives.

In the note, Wedbush said "the institution is engaging with 300+ enterprises to deploy AIP, each searching for an businesslike and unafraid solution to accommodate the latest LLMs for usage connected interior systems and proprietary data."

"Based connected the beardown show and the AI arms contention good underway, we proceed to judge Palantir is the golden modular successful AI," Wedbush said. The steadfast maintained their outperform standing and $25 terms target, representing astir 39% upside from the stock's Monday adjacent of $17.99.

Rishi Jaluria, managing manager astatine RBC Capital Markets, disagreed and said Palantir is "worth substantially lower." The steadfast has an underperform standing connected the banal arsenic good arsenic a $5 terms target, which implies downside of astir 72% from Palantir's Monday close.

"This is not genuinely a generative AI company. When we look astatine Palantir and based connected our conversations with [industry observers and Palantir's employees], this does not look to beryllium thing genuinely differentiated erstwhile it comes to generative AI," Jaluria said connected CNBC's "Squawk Box Asia" connected Tuesday.

"This truly feels similar the aforesaid Palantir services and exertion that they've been selling, which has its value. They're not really adding a tremendous magnitude of worth to beryllium a person successful generative AI, adjacent though they are positioning themselves arsenic specified successful beforehand of the concern assemblage and adjacent successful beforehand of CIOs and CEOs," said Jaluria.

But determination is inactive a "self-fulfilling prophecy risk" that Palantir tin spell retired and speech to CEOs and CIOs and accidental they're doing AI implicit and implicit again, said Jaluria.

"And that tin person the startup of caller customers, caller pilots, caller concern that really hasn't shown up successful numbers yet. And that's wherefore we deliberation it could beryllium a unsafe abbreviated successful the adjacent term."