While several tech giants have taken a hit amid the crushed hype around artificial intelligence, Palantir Technologies is an AI beneficiary that is here to stay, according to Bank of America.
"We liken the market, industry, and investor attitudes toward AI to that of the California gold rush," Mora wrote in a Tuesday note to clients, adding that the "AI rush" appears to have run dry given the recent tech sell-off.
"As it was with the gold rush, the real benefactors were the entrepreneurs that supported the rush.
"PLTR is well-positioned as enriched data, connectivity, and interoperability are what define the new era of defense," the analyst said.
The firm kept its underweight rating and $20 price target on the stock.
Persons:
Mariana Mora, Mora, —, Palantir, Morgan Stanley
Organizations:
Technologies, Bank of America, Chief, Artificial Intelligence, Department of Defense, Applications Government, U.S ., Deutsche Bank
Locations:
California