There's plenty for bulls and bears to hash out over Palantir Technologies, a maker of data analytics software, amid the company's premium valuation. As of the market open on Sept. 5, Palantir stock has gained 107% in 2025. And, PLTR stock has out-performed most software companies.
Palantir this week hosted its eighth artificial conference for customers. Further, Palantir initially rolled out its "Artificial Intelligence Platform" in early 2023. AIPCon is the company's flagship marketing event showcasing real-world AI use cases.
At this week's event, Palantir announced a five-year expansion of its partnership with Lear as well as a deal with Lumen Technologies. Customers presenting at AIPCon 8 also included American Airlines, TWG Motorsports and Novartis.
While Palantir stock has retreated roughly 18% from its all-time high of 190 set on Aug. 12, PLTR stock has been hugging its 50-day moving average, a key technical level. The 50-day line can signal that institutional investors are moving out of a top performing stock.
Generally, Palantir stock has gained amid views that the company seems poised to win more U.S. government business during the Trump administration. Also, retail investor enthusiasm for generative artificial intelligence plays has lifted PLTR stock, although commercial-related revenue has yet to ramp up.
Meanwhile, the iShares Expanded Tech-Software Sector ETF, an industry index that includes many big-cap software companies such as Microsoft, has advanced 7% this year.
OpenAI Threat To Palantir?
The IGV index has been trending down since late July. There's growing investor angst over the "per seat" licensing business models of some software companies if artificial intelligence results in the elimination of jobs.
Some bearish investors worry about rising competition for Palantir from OpenAI, the leader in developing generative AI models. William Blair analyst Louie DiPalma in a report said those worries may be overblown
"OpenAI is clearly not impacting Palantir's growth rate this year or even perhaps next year," he said. "We forecast Palantir's U.S. commercial business to grow 103% for the September quarter. An overall Rule-of-100 quarter is possible as incredible as that sounds. The question is: how long will it take for competitors to catch up?
DiPalma added: "While Palantir continues to experience major momentum, some investors are concerned about how the competitive landscape evolves five years from now with OpenAI and peers rapidly raising capital, poaching talent, emulating the forward deployed engineer model, and aggressively pursuing the enterprise and defense end-markets."
PLTR Stock: 'PayPal Mafia'
Further, strong revenue growth in the software maker's U.S. government and commercial businesses boosted second quarter financial results for Palantir stock.
In addition, Palantir said U.S. government revenue in Q2 rose 53% to $426 million. Analysts had projected U.S. government revenue of $392.7 million.
In addition, Palantir said U.S. commercial revenue jumped 93% to $306 million, topping estimates of $266 million.
Several members of the Trump administration have ties to Palantir, a company co-founded by longtime venture capitalist Peter Thiel. They include David Sacks, tapped as White House artificial intelligence and crypto czar. Thiel, Elon Musk and Sacks helped launch PayPal Holdings. Musk has been a key Trump advisor but recently left the cost-cutting Department of Government Efficiency, or DOGE.
Meanwhile, Palantir seems well-positioned for the Trump administration's plans for a "Golden Dome" air and missile defense shield that can protect the U.S. from long-range strikes.
Further, Palantir stock recently shrugged off a controversial New York Times article as well as drama involving President Donald Trump and tech industry maverick Elon Musk.
The New York Times reported May 30 that the Trump administration will tap the data analytics firm to help the federal government share data across agencies. While the NYT report raised questions over privacy and oversight, investors weighed the opportunity for new government contracts.
In addition, bearish analysts on PLTR stock have noted insider selling by Chief Executive Alex Karp and others.
PLTR Stock: AI Products, Strategy
Palantir has provided data analytics tools to government customers for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the U.S. commercial market, such as health care and financial services.
Also, Palantir has targeted the nuclear energy industry.
The Denver-based company offers three platforms. One is Palantir Gotham, used primarily by government agencies. There's Palantir Metropolis for banks, financial services firms and hedge funds. And Palantir Foundry is used by corporate clients.
Palantir gets about 55% of its revenue from government agencies.
Here's a look at Palantir's go-to-market strategy in artificial intelligence. Further, Palantir is among AI stocks to watch.
However, Palantir has not disclosed pricing for AI products. Some analysts say Palantir needs to show more revenue progress with generative AI commercial deployments.
Still, Wall Street analysts now do not expect most software makers to monetize generative AI, or "conversational AI," in a material way until 2026.
Palantir Stock Technical Ratings
Further, Palantir stock advanced 340% in 2024, with much of the gain coming after Donald Trump's Presidential election win.
Meanwhile, Palantir's Relative Strength Rating stands at 98 out of a best-possible 99.
PLTR stock holds an Accumulation/Distribution Rating of C-plus. It's been trending down. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
As it stands, Palantir stock needs to forge a new base to be actionable.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity, quantum computing and cloud computing.
