Even during its ascendance in the second half of 2024, Wall Street experts were issuing warnings that Palantir (NASDAQ: PLTR) stock is likely to contract as the firm’s strength has already been priced in by October of the year.

Despite this, PLTR shares continued soaring until they peaked on February 18, 2025, at $124.62, having recorded a 200.94% post-election rally. Since then, trading has been downhill, and the equity corrected 36.62% to its press time price of $78.71.

Given these circumstances, particularly with growing recession anxieties, Finbold sought advice from the advanced DeepSeek artificial intelligence (AI) model. You can also access this model via our own AI price prediction tool. The question we posed was whether investors should consider ‘buying the dip’ in PLTR stock, or perhaps sell while it remains at a relatively high price point.

DeepSeek sets PLTR stock price target for December 31, 2025

DeepSeek swiftly delivered a balanced perspective on Palantir, acknowledging the company’s underlying strength while also raising concerns about its stock performance recently. 

Specifically, the AI took a closer look at Palantir’s growth across both government and commercial sectors. It characterized this growth as robust, although not explosive. 

At the same time, the AI recognized that Palantir benefits from its involvement in the rapidly expanding artificial intelligence industry, a sector experiencing significant tailwinds.

However, DeepSeek was quick to highlight that the AI arena is becoming increasingly competitive. It pointed out that competition is intensifying rapidly, with names like Snowflake (NYSE: SNOW), Microsoft (NASDAQ: MSFT), and government regulators identified as key competitive pressures.

Ultimately, DeepSeek’s analysis aligned with previous expert assessments, suggesting that Palantir’s current valuation appears uncertain. Overall, DeepSeek’s projection indicates that PLTR stock is likely to trade around $70 by year’s end – lower than its current price, but still reflecting a level of confidence in the company’s achievements to date.

DeepSeek’s PLTR stock price target matches Wall Street forecast average

Interestingly, DeepSeek’s price target for Palantir shares by December 31, 2025, closely mirrors the average of recent analyst forecasts. The stock’s performance since the beginning of this year has resulted in a notable divergence of opinions among prominent experts on Wall Street.

On the bullish side, Wedbush’s Dan Ives recently shared his perspective on March 3rd, essentially maintaining that Palantir’s positive investment thesis remains strong. He set his price prediction at $120 – just shy of the February peak.

Conversely, RBC Capital and Deutsche Bank represent the more cautious end of the spectrum. Their forecasts stand at $40 and $50 respectively, suggesting a clear expectation of further price corrections ahead.

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