1 Artificial Intelligence (AI) Software Stock to Buy Hand Over Fist Before It Soars 62%, According to Dan Ives

In late March, Dan Ives -- who serves as Global Head of Technology Research at Wedbush Securities -- reiterated his outperform rating on Palantir Technologies (NASDAQ: PLTR) and lifted his price target to $230. As of this writing (March 30), this implies roughly 60% upside to current share price levels.

The upgrade from Ives underscores the conviction that Palantir's deepening integration with U.S. government and defense operations positions the company for sustained hypergrowth, even as broader software-as-a-service (SaaS) stocks still grapple with downward selling pressure.

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Palantir is becoming the AI operating system for the U.S. military

At the root of Ives' price upgrade is Palantir's accelerating federal deal momentum, particularly across programs with the Department of Defense (DOD). The company's Artificial Intelligence Platform (AIP) has become a critical tool for navigating complex geopolitical environments, including direct support for military operations amid ongoing tensions involving Iran.

Two major catalysts stand out amid Palantir's thriving government segment: the Pentagon's recent decision to designate Palantir's Maven Smart System (MSS) as a Program of Record and the 10-year, $10 billion Army contract won in late 2025.

These wins reflect Palantir's ability to embed itself in high-priority national security initiatives as the company increases its exposure to expanding Pentagon IT budgets. Taken together, Palantir is securing long-term funding and operational priority, which smart investors see as the foundation for reliable growth.

Why Dan Ives could be right about Palantir

Palantir's Foundry and Gotham platforms integrate data sets and advanced analytics to deliver real-time, decision-grade intelligence. This format is precisely what government agencies and military commanders require in today's volatile world.

Palantir's public sector leadership is fueled by rising defense and intelligence spending -- tailwinds that should compound into durable long-term upside. Against this backdrop, the company's attachment to a growing number of high-stakes programs at the Pentagon is helping Palantir build a structural moat: Once AIP is deployed, the technology becomes virtually indispensable for mission-critical outcomes.

With these dynamics, Ives sees Palantir approaching a "golden path" for AI-driven growth, given the company's unparalleled relevance in federal environments where reliance and results matter most.

Is Palantir stock a buy amid plummeting software stocks?

The current sell-off among software stocks is punishing growth names indiscriminately. In other words, investors are allowing emotion-driven fear and panic to overlook companies with measurable competitive advantages.

Palantir stands apart from its peers thanks to the company's ability to win high-margin, multiyear contracts. In reality, more than half of Palantir's business features stable, high-visibility government revenue, providing the company with a level of durability and resilience that few pure-play enterprise software companies can match.

While commercial markets still face macro-driven uncertainty, Palantir's federal foundation -- bolstered by ongoing acceleration from geopolitical tailwinds -- offers a rare combination of downside protection and visible catalysts.

Despite the appearance of a premium valuation, Palantir delivers a compelling risk/reward profile for investors with a long-term horizon.

Adam Spatacco has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.