Famous analysts are bright in recent deals by Palantir (PLTR)

After Palantir (PLTR) announced on March 25 that it had signed a deal to provide NATO with an AI system to enhance the Alliance’s combat power, Wedbush’s Dan Ives considers the news to be meaningfully positive for PLTR stocks.

The well-known analysts maintained a $120 price target and stock outperform valuation.

Why Ives is excited about this deal

Analysts believe that NATO’s data management, intelligence use and contracts to enhance decision-making are a major achievement for the company as it suggests that the company continues to be seen positively by Washington. In particular, PLTR skills in AI continue to be highly praised by the US government.

Furthermore, PLTR is well-executed and likely will benefit from the strong demand for assistance in implementing AI systems, analysts argued.

In fact, Ives hopes PLTR will get a big lift from the “tide wave” of federal spending on AI.

Recent price action for PLTR stocks

Last month, stocks rose 6%, but increased 43% over the past three months and 323% over the past 12 months.

We acknowledge the potential of PLTR, but our belief lies in the belief that AI stocks offer higher returns and hold a greater promise to do so within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for AI stocks that are more promising than PLTR but are trading below 5 times the revenue, check out our report on this Cheapest AI stocks.

Read next: Best AI stocks to buy now and According to the billionaire, 30 best stocks to buy now

Disclosure: None. This article was originally published on Insider Monkey.