Where Will Palantir Stock Be In 1 Year?

At this time last year, the stock price for Palantir Technologies (NYSE: PLTR) was under $15 per share. As of mid-morning on Oct. 9, shares of Palantir were hovering around $43 -- nearly triple where they were just one year ago.

Over the last year, Palantir's software suite has garnered much attention as sophisticated data analytics platforms become a critical part of artificial intelligence (AI) roadmaps. But with shares of Palantir continuing to rise, investors need to start wondering how much longer the music is going to be playing.

Below, I'll cover a number of catalysts that could spur even further growth for Palantir while also calling out some risks the company faces.

What could cause Palantir stock to run higher?

I see three key factors that could ignite further buying of Palantir stock over the next year.

1. Institutional Coverage and Ownership: Back in September, Palantir reached a critical milestone as it was inducted into the S&P 500. Now that Palantir is part of the exclusive index, I would not be surprised to see the company receive more attention from large financial institutions.

For example, high-profile investment banks such as JP Morgan or Wells Fargo could begin covering the stock from an equity research perspective. If more analysts from Wall Street's largest banks begin to regularly report on Palantir and its prospects, the company has a good chance to land on more investors' radar. This could be a positive catalyst for the stock as it broadens Palantir's reach to a bigger pool of investors.

Moreover, I also think that more hedge funds may begin taking positions in Palantir. Steadily rising institutional ownership in Palantir could also be a catalyst that charges more gains for the stock.

2. More Partnerships: Earlier this year, Palantir signed two notable strategic partnerships. The deal with Microsoft revolves around increasing AI investments in the defense sector, while the relationship with Oracle is going to integrate cloud-based workflows into Palantir's data analytics platform, Foundry.

I think the deals with Microsoft and Oracle bode well for Palantir's chances to continue partnering with the tech sector's largest businesses. Such relationships can help strengthen Palantir's deal flow pipeline and provide many cross-selling opportunities, ultimately serving as lucrative catalysts for the company and the stock.

3. AI in the defense sector: One area of the AI realm that I think is misunderstood is how the technology can be leveraged in military operations. Defense tech is becoming more of a priority, and it's taking many different forms. In cybersecurity, logistics, and even simulated combat operations, AI stands to be an important piece of technology for the military.