Though the upside was swiftly tempered, Palantir (NASDAQ: PLTR) stock enjoyed a remarkable market open on Monday, April 14, as it stood nearly 10% in the green in the daily chart and above $96.
Though the $8 climb from the previous close proved too ambitious to hold after the morning bell, PLTR shares remain 13.35% in the green in the weekly chart and, at $95.86, less than $5 away from reclaiming $100.
Why Palantir stock is soaring
The strong upswing was primarily driven by the news that NATO completed a record-breaking six-month procurement process with the American company and that it would deploy the so-called Maven Smart System (MSS NATO) within 30 days.
The artificial intelligence (AI) system is intended to boost situational awareness, agility, and overall control of the battlefield, and the U.S. Armed Forces have been using their own version of the same system with the program dating back to 2017, though with Alphabet (NASDAQ: GOOGL) as the original technological partner.
The unusually swift procurement came as European NATO members have been growing increasingly wary about America’s possible disengagement from the bloc and as the EU has been developing a program to remilitarize the continent.
As government and military contracts are a key revenue source for Palantir, it is hardly surprising that PLTR stock reacted positively and effectively evaporated the previous downtrend.
Is PLTR stock headed for a new ATH after major NATO deal?
Still, the equity remains 23.08% below its February 18 high of $124.62 and 0.92% below the latest high of $96.75.
Furthermore, the major reason for the downturn suffered by PLTR and the rest of the market – President Donald Trump’s tariff war – remains at play, meaning that the positive momentum is not guaranteed to last even if the psychologically convenient $100 level is reclaimed.
Featured image via Shutterstock
