Goldman Sachs: Sovereign AI unlocks $500 billion market, Palantir upgraded to Buy

Ed, according to Chaoxiang Research, that in a research report dated October 8, 2026, Goldman Sachs upgraded Palantir's rating from Hold to Buy with a $230 price target, citing a current stock price of $194.12 and an upside potential of 18.5%. Goldman Sachs estimates Palantir's total addressable market could be as high as $500 billion, with an estimated addressable size of approximately $35 million per customer, while current commercial revenue per customer stands at around $4 million.

Goldman Sachs stated that sovereign AI and custom applications are driving step-change expansion in the addressable market, with the FDE model and AI FDE supporting profit margins, alongside the U.S. government's transition from project-based work to platform solutions. Risks include competitors broadening their FDE footprint, decelerating enterprise AI adoption, and volatility in government procurement. Goldman Sachs raised its revenue projections for 2026 through 2029 to $8.371 billion, $13.233 billion, $19.335 billion, and $25.747 billion, respectively.