Palantir (PLTR) shares are inching up today after Howard Lutnick, the U.S. Secretary of Commerce, said President Donald Trump’s administration is “actively discussing” taking a stake in major defense contractors.
The administration has recently recured a 10% equity stake in Intel (INTC), and Lutnick’s remarks in a CNBC interview this morning sparked speculation about whether PLTR could be next.
While Palantir stock has pulled back from its record levels in recent sessions, it remains up roughly 150% versus its year-to-date low in early April.
Why Would the U.S. Government Want a Stake in Palantir Stock?
The government’s stake in Intel was framed as a lifeline for the semiconductor firm, and a strategic move aimed at onshoring chip manufacturing.
But Palantir isn’t struggling – it’s thriving. Still, the administration may decide in favor of taking an equity stake in the data analytics firm because of its deep ties to U.S. defense and intelligence agencies.
The company powers mission-critical operations across defense, intelligence, and public health, and generates over 50% of its overall revenue from federal contracts.
Investing in PLTR shares will, therefore, ensure long-term alignment with national security goals, secure access to proprietary AI systems, and reduce reliance on volatile procurement cycles.
In essence, a potential federal stake in Palantir stock won’t be about rescuing it, it would be about locking in its capabilities for the future.
What Federal Support May Mean for PLTR Shares in 2025
If the Trump administration were to announce a stake in Palantir shares, it could galvanize investor sentiment, but may introduce political risk as well.
On the one hand, federal support may validate PLTR’s role as a national asset, potentially boosting valuation and contract visibility.
In a market driven by artificial intelligence (AI) and defense tailwinds, a Trump endorsement may just prove the fuel Palantir bulls have been looking for in recent weeks.
However, politicized ownership, on the other hand, may distort decision-making and invite scrutny over surveillance ethics as well.
With PLTR stock already trading at an ultra-premium forward price-earnings (P/E) multiple of more than 350x, any perceived favoritism or regulatory backlash could trigger a sharp selloff.
Wall Street Recommends Caution in Buying Palantir Shares
For now, Wall Street analysts recommend treading with caution on Palantir stock.
The consensus rating on PLTR shares currently sits at “Hold” only with the mean target of roughly $155 indicating potential downside of some 3% from current levels.
