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. Palantir stock has gained amid views that the company seems poised to win more U.S. government business under 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.
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. Palantir is in negotiations with the Social Security Administration and Internal Revenue Service, the report said. While the NYT report raised questions over privacy, shares rallied as investors weighed the opportunity for new government contracts.
Meanwhile, Palantir recently announced that Fannie Mae will use its software for detecting mortgage fraud.
Further, Palantir appears to be winning more defense-related deals. In a report published May 30, William Blair analyst Louie DiPalma said the Space Systems Comand has awarded Palantir a $219 million contract extension. And, 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.
'Golden Dome' Upside For Palantir Stock?
"In our view, it is likely that Palantir and L3Harriswill provide key components for the space tracking software layer for Golden Dome, as the scope of Palantir's and L3Harris's existing contracts will likely be further expanded," said DiPalma, who holds a market-perform rating on Palantir stock amid its high valuation.
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. Tech industry maverick Elon Musk, Sacks and Thiel helped launch PayPal. Musk has been a key Trump advisor but recently left the cost-cutting Department of Government Efficiency, or DOGE.
According to a Financial Times report last year, Palantir is getting a lift from a "revolving door" of executives and officials passing between the company and high level government positions in the U.S. and U.K.
In addition, the software maker reported first quarter earnings for PLTR stock on May 5.
Amid stock market volatility from President Donald Trump's tariff-based trade policy, Palantir stock has gained 74% in 2025.
Further, PLTR stock hit its all-time intraday high of 133.49 in intraday trading on May 14. Palantir stock has outperformed other software stocks. The iShares Expanded Tech-Software Sector ETF, an industry index that includes many big-cap software companies, has advanced 3.5% this year.
Further, Palantir stock advanced 340% in 2024, with much of the gain coming after Donald Trump's Presidential election win.
Meanwhile, bearish analysts on PLTR stock have noted insider selling by Chief Executive Alex Karp and others.
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.
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.
The company continues to make progress with its "Artificial Intelligence Platform," initially rolled out in early 2023. On March 13, Palantir hosted its sixth artificial intelligence conference for customers, with several new companies taking part.
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.
PLTR Stock Technical Analysis
Meanwhile, Palantir's Relative Strength Rating stands at 99 out of a best-possible 99.
PLTR stock holds an Accumulation/Distribution Rating of B-plus. That 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.
With a rally on May 30, Palantir stock reclaimed a 125.25 cup-with-handle entry point. It trades near the top of a 5% buy zone.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity, quantum computing and cloud computing.
