The S&P 500 (SNPINDEX: ^GSPC) measures the performance of 500 companies that meet specific eligibility requirements, including positive earnings over the last four quarters, a market value of at least $18 billion, and a sufficiently liquid stock. The S&P 500 is generally considered to be the best barometer for the overall U.S. stock market.

Palantir Technologies (NYSE: PLTR) will join the benchmark index on Monday, Sept. 23, the date of the next quarterly rebalancing. Palantir shares have skyrocketed 370% since January 2023, a period that essentially coincides with the generative artificial intelligence boom started by ChatGPT.

However, Wall Street analysts are less than optimistic, despite Palantir's increasingly strong position in artificial intelligence software. The stock carries a median 12-month price target of $28 per share, implying 12% downside from its current share price of $32. Here's what investors should know.

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Source Fool.com