Baird lifts Palantir target as cheaper AI models spur demand

what happened

Barron’s reports that Baird analysts raised their price target for Palantir Technologies to $250 from $200. The new target implies 20% upside from Friday’s close of $209.05. Analyst William Power said lower-cost AI models could encourage more businesses to adopt the technology and generate another phase of growth for Palantir.

Palantir’s software enables companies to use AI models from different developers instead of depending on one provider. Baird said broader access to cheaper models could expand corporate AI usage and increase demand for Palantir’s services. The analysts wrote that a move toward open-weight models could begin a major new phase of AI adoption, with Palantir positioned at the center of that shift.

Palantir shares declined 0.9%. The stock is up 17% this year and 11% so far in October. Last week, Goldman Sachs analyst Gabriela Borges upgraded Palantir to Buy from Neutral and set a $230 price target.

Separately, Palantir and Ondas announced the creation of Regna AI, a private company intended to help governments and businesses build AI systems they can control and run independently of outside providers. Ondas will initially own all of Regna AI, while Palantir will provide AI infrastructure and engineering expertise. Ondas will be the company’s first customer. Ondas shares were unchanged.

why it matters

The target increase and Regna AI launch highlight market interest in AI systems that give businesses and governments greater control over infrastructure and access to models from multiple developers.

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