Could This Be a Golden Opportunity to Buy Palantir Stock at Under $170?

• StockStory Top Pick PLTR +1.25%

Quick Read

• Palantir (PLTR) rebounded to $170 per share after briefly falling below $155 despite Michael Burry’s short position.

• Wedbush analyst Dan Ives set a $230 price target for Palantir and predicts the company will reach a $1T market cap eventually.

• Palantir’s AI Platform may be the best product on the market.

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Buying the dips in shares of Palantir (NASDAQ:PLTR) has been the smart move every step of the way, as the AI data analytics titan has found a way to defy the doubters and soar higher just about every time. And while buying the dip in any difficult-to-value, seemingly expensive hyper-growth AI stock has been scary to do, it has arguably never been as scary to pick up as right now. Why?

Dr. Michael Burry of Big Short fame announced bearish positions on the company. And by means of his Substack, Cassandra Unchained, the man has a fairly loud microphone to talk down his position. Undoubtedly, if the short bet against shares of Palantir wasn't enough, perhaps it's a steady stream of commentary that could act as a major thorn in the side of one of the biggest AI software winners in the market over these past few years.

While Dr. Burry's short has seemingly put a dent in the stock, it seems like the name isn't about to rollover in any sort of "AI bubble" burst scenario, at least not quite yet. With Palantir shares recently ricocheting back to $170 per share after briefly dipping below the $155 per-share mark, it seems like the massive AI winner might just have what it takes to pull off more wins for investors willing to hang on.

Buying the dip in Palantir stock has never been tougher to do

Though going against Dr. Burry and the callers who argue for an AI bubble bust (indeed, there are many these days) seems like an unwise move, it is the contrarian stance right now. And given how little has changed about Palantir since before shares reported those incredible quarterly results, perhaps it makes sense to listen to the bulls who've stuck by the name through thick and thin. In a prior piece, I noted the possibility that investors were getting Palantir's wonderful earnings "for free" after the negative post-result action in the stock.

Some of the bigger bulls on Wall Street, such as Wedbush Securities' Dan Ives, sound like they couldn't be bothered by some of the things that have made Palantir shareholders a bit more nervous in recent weeks.

Ives, who once referred to Palantir as the "Messi of AI" while predicting a $1 trillion market cap for the firm, is doing a great job of expressing his bullishness, especially at a time when investors might lean on analyst commentary and notes for more guidance amid turbulent action.

And it doesn't sound like Ives is about to back off on his bullishness. If anything, he's gotten even more bullish, saying that Dr. Burry is wrong and reportedly saying things like it's time to "triple down" on the stock. In many ways, it seems like Ives has become even more bullish about the firm as the AI revolution enters yet another year.

As other pundits look for the AI trade to exhaust, Ives thinks that the AI revolution is "just getting started," at least that's what he said in a sitdown with CNBC.

Could more strength really be looming for the AI high-flyers?

While there are risks, I do think that Ives might be right to pound the table so hard, not just on Palantir stock but on the broad AI trade in general. He's been ultra-bullish on AI, arguably too bullish.

But that's been the right call to make. With AIP (AI Platform) touted as the best product on the market, one thing is for sure: I would not want to short Palantir stock, especially now that it's starting to turn the tide, even with Dr. Burry's bearish position, which will probably act as an overhang on the stock for some time.

It's hard to predict how the emerging, leading AI platforms are going to do, as the boom continues to play out. And while AI bubble fears are still present, I'd argue that there's really nothing pointing to a sustained slowdown. Mega-cap tech is spending heavily on the technology, and they may be proven right for doing so. Either way, Ives sees Palantir stock making a move to $230 per share. Such a move entails more than 30% upside from current levels.

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