- Palantir (PLTR) at $41.77 USD, 32% undervalued at $55 fair value per Morningstar.
- Crypto Fear & Greed Index hits 33, pressuring AI growth stocks on Nasdaq.
- PLTR Q2 revenue up 27% to $725M USD, U.S. commercial +55%.
Morningstar equity analyst Karl Barnick named Palantir Technologies Inc. (PLTR) the top undervalued AI growth stock on Nasdaq in an October 8, 2024 research note. Shares closed at $41.77 USD on October 10, 2024, per Nasdaq official data.
Barnick's fair value estimate stands at $55 USD per share, based on discounted cash flow (DCF) models. This represents 32% upside potential from the October 10 close.
Morningstar Valuation Details for AI Growth Stock
Karl Barnick, Morningstar senior equity analyst, applied DCF analysis incorporating Palantir's projected revenue growth and margins. He cited 25% compound annual growth rate (CAGR) in earnings through 2028.
Palantir reported Q2 2024 revenue of $725 million USD, up 27% year-over-year, per the company's August 5, 2024 earnings release. U.S. commercial revenue surged 55% to $278 million USD, CEO Alex Karp stated during the earnings call.
Institutional ownership reached 47.1% of shares outstanding as of September 30, 2024, according to Nasdaq filings.
Crypto Fear & Greed Index at 33 Impacts Nasdaq AI Stocks
The Crypto Fear & Greed Index registered 33 on October 10, 2024, indicating fear in risk assets, per Alternative.me data. Bitcoin traded at $78,003 USD, up 0.5% in 24 hours. Ethereum stood at $2,331 USD, also up 0.5%, per CoinGecko at 14:00 UTC.
Palantir shares fell 2.1% on October 10, reflecting broader Nasdaq AI sector volatility.
- Asset: BTC · Price (USD): 78,003 · 24h Change: +0.5% · Source: CoinGecko
- Asset: ETH · Price (USD): 2,331 · 24h Change: +0.5% · Source: CoinGecko
- Asset: USDT · Price (USD): 1.00 · 24h Change: 0.0% · Source: CoinGecko
- Asset: XRP · Price (USD): 1.43 · 24h Change: -0.5% · Source: CoinGecko
- Asset: BNB · Price (USD): 630.76 · 24h Change: -1.1% · Source: CoinGecko
Palantir's AI Platform Drives Growth
Palantir's Artificial Intelligence Platform (AIP), launched April 2023, integrates large language models with enterprise data. Clients span U.S. government agencies and Fortune 500 companies.
Morningstar analyst Barnick highlighted network effects from Palantir's proprietary datasets as a key moat. AIP bootcamps convert 85% of trials to paid contracts, per Palantir's Q2 earnings.
CEO Alex Karp noted during the August 5 call: "AIP bootcamps have accelerated commercial adoption across sectors."
Revenue diversifies: 55% U.S. commercial, 30% government, balance international, based on Q2 filings.
Broader AI Stock Market Context
Nasdaq AI stocks faced pressure amid crypto caution. Bloomberg ETF analyst Eric Balchunas reported $15.1 billion USD net inflows to U.S. spot Bitcoin ETFs since January 2024, through October 9.
Palantir competes with Snowflake (SNOW) and C3.ai (AI), but Barnick favors PLTR's ontology-based software. Morningstar's AI topic page tracks 150+ stocks, updated October 9, 2024.
Q3 2024 guidance projects 30% revenue growth, per CFO Shyam Sankar in the earnings call. Sankar emphasized expanding AIP in healthcare and finance.
Outlook for Undervalued AI Growth Stocks
Fear & Greed levels below 40 historically signal entry points for quality AI growth stocks like Palantir. Barnick maintains a five-star rating on PLTR.
Nasdaq data shows PLTR up 120% year-to-date through October 10, 2024. Consensus estimates full-year 2024 revenue at $2.85 billion USD, up 28% year-over-year from 22 analysts, per Yahoo Finance as of October 10, 2024.
Frequently Asked Questions
Which AI growth stock does Morningstar rate as top undervalued on Nasdaq?
Morningstar analyst Karl Barnick named Palantir (PLTR) top undervalued AI growth stock at $55 fair value. Shares closed at $41.77 USD on October 10, 2024, per Nasdaq.
What does Crypto Fear & Greed Index at 33 mean for AI growth stocks?
Index at 33 signals fear, impacting Nasdaq AI stocks like Palantir (PLTR). Bitcoin traded at $78,003 USD on October 10, 2024, per CoinGecko.
What fuels Palantir's position as an AI growth stock?
Palantir's AIP platform drives growth. Q2 2024 revenue rose 27% to $725M USD, U.S. commercial up 55%, per earnings release and CEO Alex Karp.
Morningstar's fair value details for Palantir (PLTR)?
Karl Barnick sets $55 USD fair value via DCF models, implying 32% upside from $41.77 USD October 10 close. Earnings CAGR projected at 25% through 2028.
