Palantir's Meteoric Rise Amid AI Demand Surge
Palantir shares soared over 18% due to increased demand for its AI-driven software and data analytics services. The company, involved with government and commercial clients, is capitalizing on the generative AI trend. Analysts have subsequently increased their price targets based on its performance and potential growth.

In premarket trading, Palantir shares surged by over 18%, driven by robust demand for its software and data analytics services. Businesses are racing to adopt generative AI, boosting Palantir's market capitalization by approximately $35 billion at the current share price of $99.31.
According to Russ Mould, Investment Director at AJ Bell, Palantir is capitalizing on the AI wave as industries are investing heavily to enhance their technological prowess. Co-founded by tech mogul Peter Thiel, Palantir's AIP platform is instrumental for businesses eager to deploy generative AI technology.
Senior Equity Analyst Matt Britzman likened Palantir to 'the Michael Jordan of AI stocks,' citing its ability to captivate investors and consistently deliver. Meanwhile, Chief Revenue Officer Ryan Taylor noted a cautious approach towards commercial use of DeepSeek's AI models, but confirmed ongoing collaboration if clients opt to engage.
U.S. officials, noting potential national security risks associated with DeepSeek, are scrutinizing the situation. Chief Revenue Officer Ryan Taylor commented that new tariffs imposed by President Trump could further drive demand for Palantir's analytics services in supply chain and logistics management.
Nine analysts have upped their price targets for Palantir. Morgan Stanley upgraded its rating to 'equalweight,' recognizing Palantir as a compelling AI narrative. The company's 12-month forward price-to-earnings ratio currently stands at 160.93, presenting a competitive edge in the AI domain.
(With inputs from agencies.)
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