Palantir, which is preparing to join the Nasdaq 100, is down Monday. Palantir stock shed more than 4% to 72.67 in midday trade after Nasdaq Inc. said the shares will be added to the Nasdaq 100 before the market opens Dec.

Palantir Technologies, MicroStrategy, and Axon Enterprise are set to join the Nasdaq 100 Index on Monday, Dec. 23, replacing Super Micro Computer, Moderna, and Illumina.

He argued Wall Street is dramatically underestimating how much Palantir Technologies ( PLTR -4.10%) will benefit from enterprise artificial intelligence spending. Ives believes Palantir could eventually achieve a market value of $1 trillion. The implies about 490% upside from its current market value of $170 billion.