Dan Ives Predicts This AI Stock That's Climbed 1,700% in 3 Years May Be Set for a 46% Gain

When Dan Ives talks about technology stocks, investors sit up and take notice. Ives, managing director and global head of tech research at Wedbush, has proven his ability to identify tomorrow's winners. He's remained bullish on tech stocks, even during difficult times, as he sets aside short-term headwinds and focuses on the long-term picture.

For example, Ives kept his cool last year as potential import tariffs threatened to hurt U.S. tech companies' growth. (As it turned out, the U.S. exempted companies that are investing at home, eliminating the tariff risk for many.) Investors who followed Ives' advice and stuck with or even bought tech stocks at their lows went on to score a win.

Just this week, Ives reiterated his price target on a tech stock that's climbed 1,700% over the past three years, implying the stock may gain 46% over the coming 12 months. Let's take a look at this potential winner.

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An Ives favorite

This stock has been a longtime favorite of Ives, and he's championed it even as others worried about its soaring valuation. I'm talking about Palantir Technologies (NASDAQ: PLTR). Ives reiterated a $230 price target on the stock in a post on X this week, following the company's latest earnings report. Ives called it "another strong drop the mic quarter of beats across the board."

Palantir has been on a winning streak for quite some time, posting quarter after quarter of earnings gains, and this is driven by two strong businesses: commercial and government. The company makes software that aggregates a customer's data, studies it, and uses conclusions to make better decisions, develop strategies, and much more. Palantir's Artificial Intelligence Platform (AIP), launched a few years ago, has emerged as a star product as it's driven by AI -- and therefore allows customers to immediately make use of this hot technology.

The valuation problem

Some investors have worried about Palantir's high valuation -- it's come down from its peak, but the stock still is expensive according to classic measures. It's important to note, though, that these metrics don't take into account earnings a few years into the future. As Ives has said in the past, if investors focus on valuation, they may miss out on game-changing tech players.

PLTR PE Ratio (Forward) data by YCharts

It's key to take note of a company's earnings track record, the strength of the products and services it offers, and the market outlook -- and then consider how these elements shape the company's long-term prospects. And if we do this now, Palantir looks like a stock that could climb to Ives' price target in 12 months -- and even if it doesn't, it's well positioned to benefit from the AI boom over time.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.