The share price of American software giant Palantir (NASDAQ: PLTR) continues to shatter records, hitting a new all-time high in the latest trading session.
By press time, PLTR was trading at $76.08 for the first time in its history. The new price reflects a growth of over 5% in the last 24 hours, while PLTR is up 13% on the weekly timeframe.
Why PLTR stock price is surging
Indeed, Palantir’s record-breaking price has been driven by the sustainability of several key bullish sentiments surrounding the artificial intelligence (AI) stock.
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The latest upward momentum appears to reflect investor optimism about Palantir’s partnership with Shield AI, a defense technology company.
The two entities on December 5 expanded their collaboration to develop scalable AI-powered command and control solutions for autonomous uncrewed systems.
This partnership integrates Shield AI’s Hivemind software with Palantir’s tools for planning, geospatial intelligence, and decision-making. It focuses on GPS- and communication-denied environments to enhance safety for service members and civilians.
Similarly, the stock is extending gains due to a new milestone under the Federal Risk and Authorization Management Program (FedRAMP).
This authorization establishes security and risk standards for federal cloud services, reinforcing Palantir’s position as a trusted provider of secure cloud solutions for government operations.
Palantir could see more upside as things stand, as the company is widely expected to meet the requirements to join the NASDAQ-100 index in the coming weeks.
Following the stock’s recent growth in 2024, some Wall Street analysts, led by Wedbush Securities’ Dan Ives, believe Palantir is poised to take the lead in the AI software sector in 2025 alongside other emerging players such as Salesforce.
Concerns about PLTR stock
However, this bullish projection comes with warnings, as the company’s valuation remains contentious. For instance, Jefferies is forecasting a potential crash in Palantir stock, citing valuation concerns. There are fears that the stock might be pricing in future growth, a scenario that puts PLTR at risk if it fails to meet expectations.
Nevertheless, Palantir’s share price continues to attract institutional investors, who hold at least 50% of PLTR stock as of November.
All in all, investors should exercise caution, considering Palantir’s valuation concerns and the possibility that the current rally is influenced by fear of missing out (FOMO).
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