Palantir Technologies Enters S&P 100 Amid AI Boom

Palantir Technologies Inc. (PLTR) has been officially included in the S&P 100 index, as announced by S&P Dow Jones Indices on Friday. This milestone comes as the data analytics company enjoys a remarkable surge following the recent presidential election.

What Happened: On Sunday, Palantir expressed pride in its new position on the S&P 100 through a post on social media platform X, stating, "Onwards." The company is set to replace Dow Inc. (DOW) in the index effective March 24, coinciding with the index's quarterly rebalancing.

In addition to Palantir, Intuitive Surgical Inc. (ISRG) and ServiceNow Inc. (NOW) will also join the S&P 100, taking the places of The Kraft Heinz Company (KHC) and Ford Motor Co. (F).

Since President Donald Trump’s election victory in November, Palantir has emerged as a standout performer among S&P 500 stocks, boasting a gain of almost 60%, with shares currently valued at $84.82. This increase translates to an annualized return exceeding 184%, according to data from Benzinga Pro.

Financial analysts attribute Palantir’s impressive growth to two main factors: its strong artificial intelligence capabilities and the efforts of CEO Alex Karp to improve government efficiency through the company’s technology.

Why It Matters: The outlook from analysts on Palantir’s stock is varied. Among 25 analysts, the consensus price target is approximately $70.30. However, the latest assessments from firms like Wedbush, Loop Capital, and Citigroup average a more ambitious target of $123.67, suggesting a potential upside of nearly 46%.

Other significant changes to the S&P indexes include the inclusion of DoorDash Inc. (DASH) in the S&P 500, while FMC Corp. (FMC) and Celanese Corp. (CE), both having struggled since the election, will be moved to the S&P SmallCap 600 index.

Price Action: On the previous Friday, Palantir's stock closed at $84.90, marking a 5.52% increase for the day. In after-hours trading, it experienced a slight dip of 0.09%, settling at $84.82. Year-to-date, the stock has increased by 12.92% and has risen an impressive 234.92% over the past year. Despite this growth, it still remains about 38% below its highest value of $124.62, which was recorded on February 18, according to data from Benzinga Pro.

Palantir, S&P100, Stocks