Palantir Technologies (PLTR) is one of the top artificial intelligence companies that has created significant wealth for its investors. Shares are up more than 600% over the past three years. 

However, that upside hasn’t come without volatility. And these past two weeks have been more than volatile, with shares plunging significantly after April 2 when President Donald Trump announced steep “reciprocal” tariffs on U.S. trading partners. Shares fell more than 4% on April 3 and more than 11% on April 4. 

Then, a rally took hold. 

The chart above shows just how vicious the rally has been on news that the previously announced reciprocal tariffs will be paused for 90 days, with the exception of now-145% tariffs on Chinese imports. Investors took the opportunity to snap up the “Liberation Day” dip. 

Although Palantir has surged nearly 20% in just the past five trading days, shares are still down about 26% in the year to date. 

Let’s dive into whether PLTR stock is still a buy at current levels or if investors should pursue other opportunities. 

Palantir: A Tariff Winner?

Palantir’s core business model revolves around providing big data solutions to government agencies and corporations looking to utilize vast data sets to make better decisions. 

After Palantir began incorporating artificial intelligence, such as through its Artificial Intelligence Platform (AIP), investors have flocked to the company’s shares. The underlying belief is that Palantir will continue to see near-term growth acceleration as it leverages soaring demand for its solutions.  

Palantir does appear to be moving in the right direction, and quickly. The company has since seen its profit margin surge to more than 16%, with a positive return on equity and return on assets. 

However, Palantir is not an investment that any rational investor would consider “cheap.” Trading at more than 760 times earnings and at a price-sales ratio of 75 times, PLTR stock is priced for perfection. Accordingly, any sort of material deterioration in investor sentiment around growth stocks in general could propel this stock lower, at least over the short-term. 

But with many in the market looking to rotate into companies with the potential to grow out of the recent decline, Palantir does appear positioned for a near-term rally. 

What Do the Analysts Think?

The current consensus price target on Palantir stock sits at $84.53 per share, lower than where the stock is currently trading. 

As a result, investors can conclude that analysts think Palantir is appropriately valued at current prices, if not posed for slight downside. And with an average “Hold” rating on the company, Wall Street isn’t rushing to buy in. 

Investors should note that the range of price targets on Palantir stock is massive. 

From a potential low of $18 per share to a high of $125 per share, it’s clear that bulls and bears have very divergent views of where Palantir is headed over the next year or so. I’m of the view it is very difficult to predict the upside potential for Palantir here. Accordingly, this is a company I’m going to happily sit and watch from the sidelines, despite what could be some decent near-term potential.