Palantir Stock Is Rising Tuesday: What's Going On?

Palantir Technologies Inc PLTR shares are trading higher. The company on Tuesday announced it was awarded a new contract with the U.S. Department of Defense.

What Happened: Palantir won a U.S. Army contract worth up to $250 million through 2026 to support artificial intelligence (AI) and machine learning (ML) capabilities for Combatant Commands (COCOMs), Armed Services, the Intelligence Community and Special Forces. 

Palantir has partnered with the Army since 2018. Tuesday's announcement expands on that partnership with a focus on furthering Joint All-Domain Command and Control (JADC2) efforts across the aforementioned forces.

"We're honored to expand our partnership with the Army to continue delivering the most innovative technologies and advanced data applications across the Armed Services," said Akash Jain, President, Palantir USG.

"Maturing new concepts for how we deploy solutions in different contexts is key to maintaining our nation's competitive advantage, and we appreciate the opportunity to support this mission."

The news comes after Palantir shares traded more than 6% higher to start the week amid the ongoing conflict in the Middle East. Israel formally declared war on Hamas over the weekend after the Islamist militant group launched a coordinated attack that has resulted in at least 1,500 deaths and thousands more wounded. 

Palantir has contracts with several government agencies and defense organizations around the world. Shares are reacting favorably as investors believe the war breaking out in the Middle East could increase demand for the data software company's products.

See Also: Lindsey Graham Urges Biden To Illuminate The White House With Israeli Flag: 'We Have A Chance To Reset The World Here'

PLTR Price Action: At the time of publication, Palantir shares were up 2.1% at $18 after rising 6.02% on Monday, per Benzinga Pro.

Photo: Photo: Cory Doctorow from Flickr.