Benzinga - by Shanthi Rexaline, Benzinga Editor. Shares of Palantir Technologies, Inc. (NYSE:PLTR) were rallying in premarket trading on Thursday, as it moved in sympathy with Nvidia Corp. (NASDAQ:NVDA). Nvidia reported forecast-beating second-quarter results and issued strong third-quarter guidance.
Nvidia’s results are one of the barometers of AI spending, said Wedbush analyst Daniel Ives in a note reviewing the chipmaker’s results.
“We are now in the use case study phase and build-out stage of AI which ultimately is setting up for a massive cycle of spend,” the analyst said. He named Palantir as a beneficiary of the spending splurge he foresees.
In late July, Ives initiated coverage of Palantir with an Outperform rating and $25 price target, calling the company the “Messi of AI.”
“Palantir has built an AI fortress that is unmatched and poised to be a major player in this AI Revolution over the next decade," he said.
Palantir stock has run up to an intraday high of $20.24 ahead of its second-quarter earnings report released on Aug. 7, and the stock has pulled back since then amid the broader market sell-off.
In premarket trading, the stock rose 4.25% to $15.95, according to data from Benzinga Pro.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.