Palantir Stock Is On Fire, Shares Hit Another All-Time High: What's Fueling The Momentum?

Palantir Technologies Inc PLTR shares closed Monday at their highest levels ever and have now nearly doubled since the start of the year. Here’s a look at what’s been fueling the momentum in the AI software company’s stock.

AI Momentum: Palantir shares have risen more than 97% year-to-date on the back of AI-related tailwinds. The company continues to see strong demand for its Artificial Intelligence Platform, which has helped it become one of the best-performing names in the S&P 500 in recent years.

In the words of co-founder and CEO Alex Karp, Palantir is “delivering the operating system for the modern enterprise in the era of AI.” Karp said last quarter that the company was in the middle of a “tectonic shift” in the adoption of its software.

Palantir beat analyst estimates on the top and bottom lines when it reported first-quarter results in May. U.S. Commercial revenue increased 71% year-over-year and U.S. Government revenue climbed 45%.

Palantir’s customer count also grew 39% year-over-year and 8% on a quarter-over-quarter basis, which included 139 deals worth over $1 million during the first quarter and 51 deals worth at least $5 million.

After the market closed on Monday, Palantir scheduled its second-quarter earnings for after the market close on Aug. 4. Analysts currently expect the company to report earnings of 14 cents per share and revenue of $939.71 million, according to estimates from Benzinga Pro.

Analysts are divided on where Palantir shares are headed. Some analysts maintained Neutral or Underperform ratings following the company’s first-quarter results, with price targets as low as $90. Others see more room to run with Loop Capital increasing its price target to $155 last month and Wedbush raising its target to a Street-high $160 last week.

Wedbush’s Dan Ives sees a "golden path" forward for Palantir and expects the company to be a "core winner" of the trillions of AI spend anticipated over the next few years.

At the end of May, Ives predicted that Palantir could reach a $1 trillion market cap valuation, or approximately $427 per share, over the next two to three years.

“You cannot talk AI revolution without saying Palantir," Ives said at the time.

PLTR Price Action: Palantir shares hit a new all-time high of $149.57 in Monday’s session before closing the day up 4.96% at $149.15, per Benzinga Pro. Palantir stock is now up approximately 61% over the past three months. The stock has a high momentum score of 98.91, according to Benzinga data. 

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