New York — Palantir Technologies stock rose sharply Wednesday, up 4.6% at 11:32 a.m. ET after touching a 6% gain earlier in the session. Shares of the AI software and data analytics firm traded at a premium despite recent volatility.

Mizuho Securities analyst Gregg Moskowitz shifted his rating on Palantir to outperform, equivalent to a buy, from neutral. He stuck with his $195 price target. That level suggests 47% potential gains from the stock’s Tuesday close of $132.79.

Moskowitz praised Palantir’s sales growth and margin expansion as unmatched in the software sector. He called the company’s AI offerings “in a category of one.” The analyst had earlier worried about a sharp valuation drop, or multiple reversion. But after a 36% slide in recent weeks, he now sees a stronger risk-reward profile.

The move follows a double upgrade last week from Freedom Capital Markets. Analyst Almas Almaganbetov lifted his rating from sell to buy with a $170 target. That implies 28% upside. Almaganbetov cited Palantir’s latest results, which beat management’s guidance and Wall Street estimates. He linked the strength to rising demand for the firm’s Artificial Intelligence Platform, or AIP.

Wall Street sentiment has swung quickly. Late January saw just six buy or strong buy ratings among 26 analysts. Now 13 of 27 analysts recommend buying, according to data trackers. Palantir’s accelerating growth drives the shift.

Valuations remain steep. The stock trades at 210 times earnings, down from 396 late last month. Investors still split on the name. Palantir operates in a niche with few peers, blending AI tools for government and commercial clients.

Recent quarters show momentum. U.S. commercial revenue jumped 64% last quarter, hitting $299 million. Total revenue rose 40% to $828 million, with adjusted operating margins at 34%. Management raised its 2026 outlook, projecting U.S. commercial growth above 60%.

Palantir’s platform handles massive datasets for defense, healthcare and energy sectors. Deals with the U.S. Army and British National Health Service highlight its reach. Skeptics question sustainability at current prices. Bulls point to AIP’s role in enterprise AI adoption.

Trading volume Wednesday topped 40 million shares by midday, well above the 30-day average. The stock hit $139.18 intraday. Palantir closed Tuesday at $132.79 after a 2.5% drop.

Analysts expect earnings of 6 cents per share next report on May 1. Full-year revenue forecasts sit at $3.74 billion, up 32%.