Shares of Palantir (NASDAQ:PLTR) faced pressure for the second consecutive day following an announcement interpreted as unfavorable news. The Trump Administration revealed a five-year plan to cut defense spending by 8% annually, approximately $290 billion. Given Palantir’s reliance on government contracts, investors fear reduced business opportunities. However, Wedbush analyst Daniel Ives views the sell-off as an overreaction. Ives argues that Palantir’s unique software positions it well in the new spending environment, potentially securing more IT budget allocations. Increased AI investments, particularly through Project Stargate, could benefit Palantir as organizations adopt strategic AI infrastructure. With FedRAMP authorization, Palantir can offer its services across the U.S. government. Ives remains optimistic, rating Palantir as a top stock with a $120 price target, suggesting significant future growth potential. — news from TipRanks
