Shares of data mining and analytics company Palantir (NYSE: PLTR) rose 8.4% in early trading after NATO acquired the company’s (PLTR) AI-based Maven intelligence system to enhance its military capabilities. The Maven system used by the U.S. military applies advanced AI technology to quickly process and interpret massive amounts of battlefield data, resulting in faster and more accurate target identification.
The deal not only strengthens Palantir’s position in the defense and AI sectors, but also validates its technology and enhances its credibility in the defense and AI sectors.
For investors, the deal reinforces Maven’s position as a key growth catalyst that can continue to drive Palantir’s growth through further collaborations and contract extensions.
Shares closed at $92.63, up 4.7% from the previous close.
What the market is telling us
Palantir’s stock price has been volatile, with gains of more than 5% 40 times in the past year. In this context, today’s move suggests that the market considers this news significant but does not fundamentally change its view of the company.
The biggest rally we reported on previously was 17 days ago, when the stock fell 6% after the Bureau of Economic Analysis reported that the Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index, showed higher-than-expected core inflation, heightening concerns about stagflation (slowing economy, rising prices). Core inflation excludes food and energy prices.
The core PCE index showed inflation rising 2.8% year-over-year (vs. 2.7% expected) and 0.4% month-over-month (vs. 0.3% expected) in February 2025. These data heightened concerns about proposed tariffs and sparked market volatility. The combined effects of rising inflation and escalating trade tensions could cloud the economic outlook and create uncertainty for businesses and policymakers.
Palantir is up 22.1% since the beginning of the year, but at $91.80 per share, it’s still 26.3% below its 52-week high of $124.62 set in February 2025. An investor who bought $1,000 worth of Palantir shares at the time of the September 2020 IPO would now have $9,663 worth of their investment.
Unless you’ve been living in isolation, it should be obvious by now that generative AI will have a huge impact on the way large businesses do business. We like a lesser-known (but still profitable) semiconductor stock that is benefiting from the rise of AI. Click here to get a free report on our favorite semiconductor growth story.
Related topics:
