Palantir Technologies (PLTR -0.43%) delivered triple-digit returns in 2023, 2024, and 2025, but the stock has been dragged lower by an indiscriminate sell-off in software names in 2026. Palantir is down 40% from its high as of July 28.

However, investors’ fears that generative artificial intelligence tools will displace Palantir are unwarranted, and the stock’s valuation — once excruciatingly expensive — now looks more tolerable. I predict Palantir will trade at $192.50 per share by mid-2027. That implies 55% upside from its current share price of $124.

Here’s my logic.

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Palantir has secured a leadership position in AI platforms because of unique software architecture

Palantir develops data integration and…