Daiwa Upgrades Palantir on Strong AI Demand Despite UK Controversies

Daiwa Securities upgraded Palantir Technologies from neutral to buy following its fourth-quarter earnings beat, citing explosive growth in U.S. commercial AI platform demand. Revenue surged 137% year-over-year in the segment, with management forecasting at least 115% growth ahead.

The analyst note highlights Palantir's transition from pilot programs to operational deployments, with expanding contract durations and use cases. "This isn't speculative demand—enterprises are running Core operations on their infrastructure," said Daiwa's Shigemichi.

Controversy shadows the growth story in Britain, where Palantir's £500 million in government contracts—including a £330 million NHS deal—faces mounting scrutiny. Transparency advocates argue the company's closed systems violate public sector accountability standards.