Palantir Technologies (NASDAQ: PLTR) is making a strong recovery, with its stock price closing at $83.65, marking a 7.17% gain on March 12. This rebound follows a sharp decline in February, when Palantir crashed below $100, raising concerns about its long-term trajectory.
The recent downturn was partly fueled by reports that the Department of Defense (DoD) may implement budget cuts as part of a broader government-wide cost-cutting initiative, posing a significant challenge for the company, which relies heavily on government contracts.
Adding to the bearish sentiment, investor confidence took another hit after reports surfaced that CEO Alex Karp had adopted a new stock trading plan, enabling him to sell nearly 10 million shares over the next six months, putting additional pressure on the stock.
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However, despite these challenges, Palantir is regaining momentum as investors focus on a series of bullish catalysts that suggest the company’s long-term growth story remains intact.
Palantir’s U.S. Army contract: A major growth catalyst
One of the biggest drivers behind Palantir’s recent rally is the successful delivery of two Tactical Intelligence Target Access Node (TITAN) trucks to the U.S. Army. These trucks, designed to process battlefield data for advanced targeting, are part of a $178.4 million contract to develop 10 next-generation, AI-driven ground systems.
The project is progressing as planned, with all 10 systems expected to be completed by 2026.
While the Army has not disclosed the potential size of a full production order, Palantir’s internal estimates anticipate future procurement of 100 to 150 vehicles.
Artificial Intelligence Platform conference (AIPCon) to fuel more gains
Beyond its defense business, Palantir is actively expanding its commercial client base, addressing long-standing investor concerns over its reliance on government contracts.
The company’s upcoming Artificial Intelligence Platform Conference (AIPCon) on March 13 has generated significant interest, as Palantir recently unveiled a lineup of previously undisclosed participants.
According to William Blair analyst Louie DiPalma, at least nine new companies have been identified, including Walgreens, R1 RCM, KKR, Saildrone, Delta Air Lines, Heineken, and Ripcord. Among them, Walgreens stands out, as Palantir recently announced a $67 million contract with a major U.S. pharmacy for load-balancing prescription fulfillment and patient outreach.
While it remains unclear whether the deal is with Walgreens or CVS, DiPalma noted that CVS also appears to be an unannounced Palantir customer, based on tracking data.
Strategic AI partnership with KT
Palantir is also making inroads into the Asian AI market, thanks to a newly announced strategic partnership with South Korean telecom giant KT.
The collaboration will integrate Palantir’s AI-driven data analytics software into KT’s cloud and network infrastructure, with a focus on regulated industries like finance, where security and compliance are key concerns.
Palantir stock outlook: Can the rally continue?
Palantir’s AI-driven expansion, and growing enterprise adoption continue to drive bullish sentiment, with the stock surging 234% over the past year.
That being said, while Palantir’s long-term potential looks strong, its path to $100 in the near term remains uncertain, especially with defense budget cuts and broader economic uncertainties looming.
The real test will be whether Palantir can successfully expand into the private sector and demonstrate that its AI solutions can drive sustainable revenue growth.
With AIPCon approaching and new enterprise deals in focus, investors will be watching closely to see if Palantir can sustain its momentum or if short-term challenges will trigger another pullback in the months ahead.
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