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. From a technical view, Palantir stock has formed a new base.
As of the market open on Oct. 2, Palantir stock has gained 146% in 2025. And, PLTR stock has out-performed most software companies. The iShares Expanded Tech-Software Sector ETF, an industry index that includes many big-cap software companies such as Microsoft, has advanced 15% this year.
Also, Palantir stock has clawed back to near its all-time high of 190 set on Aug. 12, PLTR stock trades above its 50-day moving average, a key technical level. The 50-day line can signal whether institutional investors are moving in or out of a top performing stock.
Here's what investors need to know about the data analytics software maker and its chief executive, Alex Karp.
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.
Palantir recently 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.
Here's a look at Palantir's go-to-market strategy in artificial intelligence. Further, Palantir is among AI stocks to watch.
OpenAI, Salesforce A Threat To Palantir?
Some bearish investors worry about rising competition for Palantir from OpenAI, the leader in developing generative AI models. With its new Missionforce unit, Salesforce is another new rival in the defense market.
Further, strong revenue growth in the software maker's U.S. government and commercial businesses boosted second quarter financial results for Palantir stock.
The IBD Methodology: How To Invest In Stocks While Managing Risks
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 had 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. But it faces Golden Dome competition from Lockheed Martin.
Palantir Stock Technical Ratings
Further, Palantir stock advanced 340% in 2024, with much of the gain coming after Donald Trump's Presidential election win.
From a technical view, Palantir stock has forged a cup-with-handle base. There's a new entry point of 185.75, according to IBD MarketSurge.
Meanwhile, Palantir's Relative Strength Rating stands at 98 out of a best-possible 99.
PLTR stock holds an Accumulation/Distribution Rating of B. 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.
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