Over the past few months, one tech stock has consistently outperformed its larger peers, demonstrating strong resilience in a highly unstable market.

Palantir Technologies ( PLTR ) has emerged as one of the year’s undeniable breakout stocks, with year-to-date (YTD) gains of almost 60%. While many prominent tech stocks have struggled recently, primarily due to rising uncertainty from President Donald Trump’s tariffs, PLTR has trended upward and made notable progress.

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Originally a data analytics and enterprise software company, Palantir has successfully ventured into other high-growth markets, such as cybersecurity services and providing defense contracting technology to the U.S. military. Through it all, though, Wall Street analysts have remained mixed on the stock, despite its recent growth.

However, one financial institution recently increased its PLTR stock price target significantly, marking a historic milestone for the company.

Bank of America sees big things ahead for Palantir

While many tech stocks kicked off this week by surging, Palantir stock displayed only modest growth yesterday. The U.S. and Chinese governments announced a 90-day pause on the tariffs they have levied against each other, and markets have reacted extremely well to the news.

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Palantir did close out yesterday in the green, although it dipped slightly in after-hours trading. All the same, investors have cause for optimism, given the significant price target increase that PLTR stock received from Bank of America, its highest one so far.

The Wall Street bank reiterated a Buy rating for Palantir and raised its forecast from $125 per share to $150, implying upside of 27%. Analyst Mariana Perez Mora released a note to investors, laying out her team’s bullish take on the breakout AI stock.

“While there’s some value for general tools, we continue to remind investors Palantir’s value is creating outcome-focused bespoke AI-enabled products, at scale,” she stated. “We see PLTR as the market definer for organizations leveraging AI to drive accelerated tangible results.”

Additionally, she pointed to Palantir’s recent earnings report as proof that the company is able to deploy products quickly and increase its customer base. Her prediction is even more bullish than that of Wedbush analyst Daniel Ives, who recently increased his from $120 to $140, implying 18% upside potential.

Palantir celebrated another important milestone last week when it joined the list of the U.S.’s top 10 most valuable tech companies by market capitalization, blowing past leading software company Salesforce. This puts it in the same elite category as market leaders such as Microsoft, Apple, and Nvidia.

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Perez Mora also addressed a fear some experts have expressed regarding Palantir being compromised by cuts in federal spending, as the company has benefited significantly from lucrative defense contracts.

However, she argues that the recent Modernizing Defense Acquisitions and Spurring Innovation executive order, a policy aimed at helping the U.S. government accelerate defense initiatives, will likely benefit Palantir.

Despite this optimistic take, some experts still see Palantir as risky

Other Wall Street analysts aren’t so bullish on Palantir, which may be because some experts see it as being overvalued. Former Goldman Sachs equity analyst Carl Hazeley states that “with a price-to-earnings ratio of over 150 times, this stock could well have much, much further to fall.”

Related: Venture capital leader has harsh words for Palantir

Last week, analysts from Citi, UBS, and Loop Capital Markets all increased their Palantir stock price targets by modest amounts, but none hold Buy ratings, and all three forecasts imply significant downside potential.

Even so, Perez Mora is steadfast in her take that PLTR stock will continue to grow and will benefit from upcoming catalysts, even if other analysts believe its valuation is too high. Experts have made similar arguments to Hazeley’s for months, but through it all, Palantir has mostly continued growing.

Most analysts have made it clear they are approaching the stock with caution, despite its recent success and steady growth. It remains uncertain whether Perez Mora’s price target increase will help spark further bullish sentiment on Wall Street.

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