Palantir Stock Hits All-Time High: What's Going On?

Palantir Technologies Inc PLTR shares are hitting new all-time highs on Wednesday. Here’s a look at what’s fueling the momentum.

What To Know: Palantir shares have risen more than 500% over the past year and are now up approximately 93% year-to-date.

Much of the momentum has been driven by the company’s positioning in the AI space. The stock also appeared to get a lift more recently from the Israel-Iran conflict. Palantir has several government contracts and has seen an acceleration since President Donald Trump took office, securing more than $113 million in contracts. Palantir was also awarded a $795 million contract modification by the U.S. Army for its Maven Smart System in May.

As defense budgets increasingly incorporate AI, Palantir could be a potential beneficiary of heightened geopolitical tensions. Palantir signed a strategic agreement with the Israeli Defense Ministry to support war efforts last year, per Bloomberg.

Even as Palantir shares continue to climb to new highs, some analysts believe there could be more room to run. Loop Capital analyst Mark Schappel maintained Palantir with a Buy and raised the price target from $130 to $155 earlier this month. At the end of May, Wedbush's Dan Ives predicted that Palantir shares will more than triple in two to three years to reach a $1 trillion market cap valuation, or approximately $427 per share.

"[Alex] Karp, he's playing chess, others are playing checkers. And I think you are starting to realize more and more in government, enterprise, and that's why you cannot talk AI revolution without saying Palantir,” Ives said in a CNBC interview.

Palantir has a strong momentum score of 99, according to Benzinga Pro data. The company beat analyst estimates in the first quarter as U.S. Commercial revenue grew 71% year-over-year and U.S. Government revenue climbed 45%.

Palantir also guided for second-quarter revenue in the range of $934 million to $938 million versus estimates of $899.12 million, and raised its full-year outlook. The company said in its earnings release that it’s experiencing “surging and ferocious growth.”

PLTR Price Action: Palantir shares traded as high as $147.67 on Wednesday, marking new all-time highs. The stock was up 0.18% at $142.94 at the time of publication, according to Benzinga Pro.

Palantir has an RSI of 66, per Benzinga data. A stock is generally considered overbought when its relative strength rises above 70.

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