Palantir (PLTR) stock climbed 5% during Monday’s trading session, now sitting just 27% away from its all-time high. Palantir is seeing huge growth from both of its main client bases, and investors are beginning to buy in as it rises. Earlier this year, investors’ expectations were incredibly high, and the stock’s valuation looked inflated. Following the hefty sell-off that hit most artificial intelligence (AI) stocks, however, shares are climbing again.
A big reason for the Palantir drop is connected to Trump. Specifically, the present administration has signaled its interest in cutting the country’s defense spending. That affects the company because much of its revenue comes from defense contracts with the US. Therefore, its AI solutions for the Department of Defense could be in jeopardy.
Palantir has become one of the hottest AI stocks on Wall Street. Its data analytics software has been around for a long time and was originally catered to government agencies. But in recent years, Palantir has expanded rapidly into the private sector. While Palantir’s base product is a strong selling point, the most profitable lately has been its Artificial Intelligence Platform (AIP). AIP allows its users to do several things, but model integration and AI agents are the two most noteworthy. In a world where AI’s dominance continues to grow, stocks like PLTR are becoming increasingly attractive to investors looking to profit off the next huge wave.
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Palantir (PLTR) stock is trading near the top of its 52-week range and above its 200-day simple moving average. Investors have been pushing the stock price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock’s future value and could help send it back towards all-time high levels. Analysts at CNN are suggesting this could come within the next year, and perhaps the next few months.
Most analysts surveyed by CNN suggest holding PLTR stock, saying that the stock may be in the midst of a climb. 54% of 26 analysts suggest to hold, while 31% say now is a convenient time to buy. While the latter number is solid, it suggests that the ship is sailing away to invest in PLTR, with the stock amid its rebound. While investors can still profit off of PLTR shares at press time, the most profits lie with those who bought in sooner.