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 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. Palantir stock has gained 102% in 2025. Shares hit a new all-time high of 155.68 on July 17.
In addition, second quarter earnings for PLTR stock are due Aug. 4. In the Q2 Palantir earnings report, Wall Street analysts project 54% profit growth to 54 cents with revenue rising 38% to $937.5 million.
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 11% this year.
The lofty valuation Palantir stock may be less of an issue amid current market conditions.
Palantir Stock: 'PayPal Mafia'
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.
Also, the U.S. Army announced that it awarded Palantir and Anduril a $100 million contract to develop the next phase of its Next-Generation Command and Control (NGC2) platform prototype. "This is a major win for both Anduril and Palantir as NCG2 is one of the highest-priority U.S. Army projects," said William Blair analyst Louie DiPlma in a report. "This NGC2 will be part of third-quarter bookings. We estimate that $30 million of the total contract value will be for Palantir."
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.
Palantir 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.
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 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 B-minus, down from 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.
As it stands, Palantir stock trades well above a 5% buy zone from a cup-with-handle entry point of 125.25.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity, quantum computing and cloud computing.
