A Top AI Play With Significant Growth Potential, According to Virtus Investment Partners

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A Top AI Play With Significant Growth Potential, According to Virtus Investment Partners

A Top AI Play According to Virtus Investment Partners

Joe Terranova of Virtus Investment Partners believes Palantir Technologies (PLTR) is a prime investment opportunity within the booming artificial intelligence (AI) sector. He considers Palantir to be undervalued and overlooked despite recent highs.

Terranova owns Palantir stock personally and holds it in his momentum fund, where it represents the seventh-largest holding with a 1% weighting. His bullish stance aligns with his previous identification of Palantir as an "AI halo" play.

He highlights Palantir's significant government contracts and the burgeoning growth in its commercial business, fueled by AI. This growth is evident in the increasing revenue attributed to AI, which is expected to continue in the coming quarters.

Terranova believes Palantir's momentum stands out in a software environment experiencing friction. He is not alone in his optimism, as BofA Securities recently added Palantir to its top 10 US ideas list, anticipating further rallies as the AI focus shifts towards software.

While the upcoming earnings season will be crucial for the broader market, Palantir's report is not due until early August. Analysts predict earnings of 8 cents per share on revenue of $652.141 million.

Despite a slight dip at the time of publication, Palantir shares have surged approximately 60% year-to-date, suggesting potential for further upward movement.