Palantir's Stock Surges on $795 Million Army Contract Modification for AI-Powered Maven Smart System
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Palantir Stock Is Trading Higher Thursday: What's Going On? - Palantir Technologies (NASDAQ:PLTR)
Palantir Technologies Inc PLTR shares are trading higher Thursday. The stock appears to be benefiting from an Army contact modification announced after the market close on Wednesday. What Happened: Late Wednesday, the Department of Defense announced that it awarded Palantir a $795 million modification to a contract for its Maven Smart System software licenses. The contract was initially announced in May 2024 as a $480 million fixed, firm-price contract. This week's modification brings the total contract value up to nearly $1.28 billion, with an estimated completion date of May 28, 2029. Project Maven was originally launched in 2017 with the aim of accelerating AI use for the U.S. military, according to reports. The program utilizes AI to help analyze large amounts of data and imagery from various military sources. Palantir said earlier this month that U.S. government revenue increased 45% year-over-year in the first quarter. Despite a multitude of government contracts in recent years, the company is seeing an even bigger acceleration on the commercial side. U.S. commercial revenue climbed 71% in the company's most recent quarter and Palantir guided for full-year 2025 U.S. commercial revenue in excess of $1.18 billion. Several analysts have lifted price targets on Palantir in recent weeks, ranging from $90 to $140. Goldman Sachs maintained a Neutral rating while raising its target from $80 to $90, suggesting caution following Palantir's massive 500% surge over the past year. Earlier this month, Wedbush's Dan Ives maintained an Outperform rating and raised the target from $120 to $140, calling Palantir a generational tech name that could rise to a $1 trillion market cap over the next three years. Palantir had a market cap of approximately $284 billion as of Wednesday's close, according to Benzinga Pro data. PLTR Price Action: Palantir shares were up 3.86% at $125.24 at the time of publication Thursday, according to Benzinga Pro. Photo: slyellow/Shutterstock. PLTRPalantir Technologies Inc$125.333.94%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.34Growth97.42Quality-Value2.72Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs
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Why Shares of Palantir Are Rising Today | The Motley Fool
Shares of Palantir Technologies (PLTR 3.41%) traded nearly 3% higher as of 10:55 a.m. ET today. The U.S. Department of Defense (DoD) yesterday announced it has awarded Palantir a contract modification to increase potential spending on work Palantir is currently doing with the Army. The DoD said it awarded Palantir a $795 million modification for its Maven Smart System software licenses, with an expected completion data of May 28, 2029. According to SpaceNews, the contract for Palantir's Maven Smart System had a ceiling of $480 million one year ago. With the $795 million increase, the Pentagon may spend nearly $1.28 billion on artificial intelligence (AI) for the Army by 2029. Palantir has been working with the DoD since 2017 to help the department improve the sharing of information between its various departments through AI-enabled awareness, global integration, logistics, and targeted workflows, among other solutions. The company can gather massive amounts of data from different sources, including satellites, drones, and various sensors, and then analyze the data and make suggestions in real time for how to approach various situations. Palantir has impressed investors with its ability to keep securing government contracts and funding, despite much discussion about government spending cuts this year. However, it looks like the Trump administration will look to keep the defense base budget flat in fiscal year 2026. Palantir is now up 66% this year and has absolutely crushed the market. The stock seems to have no limit and now trades at 214 times forward earnings. Given the company's traction and how well the stock has performed in the face of many challenges this year, Palantir's technology appears to be very impressive and a leader in AI analytics and decision-making.
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Palantir Technologies' stock rises following a significant U.S. Army contract modification, boosting its AI-powered Maven Smart System project to nearly $1.28 billion. The news highlights Palantir's growing influence in AI-driven military technology and data analysis.
Palantir's Stock Surge on Army Contract Modification
Palantir Technologies Inc. (NASDAQ: PLTR) experienced a significant stock price increase on Thursday, following the announcement of a substantial U.S. Army contract modification. The Department of Defense awarded Palantir a $795 million modification to its existing contract for the Maven Smart System software licenses, bringing the total contract value to nearly $1.28 billion 1.
Source: Benzinga
Project Maven and AI in Military Applications
Project Maven, initially launched in 2017, aims to accelerate AI use for the U.S. military. The program utilizes artificial intelligence to analyze large amounts of data and imagery from various military sources 1. Palantir's involvement in this project showcases its ability to gather and process massive amounts of data from different sources, including satellites, drones, and various sensors, to provide real-time analysis and suggestions for various military situations 2.
Palantir's Growth in Government and Commercial Sectors
The company has reported impressive growth in both government and commercial sectors. In the first quarter, U.S. government revenue increased by 45% year-over-year, while U.S. commercial revenue climbed 71% 1. Palantir has projected full-year 2025 U.S. commercial revenue to exceed $1.18 billion, indicating a strong trajectory in its business expansion.
Analyst Perspectives and Market Valuation
Several analysts have recently raised their price targets for Palantir, with estimates ranging from $90 to $140. While Goldman Sachs maintained a Neutral rating, Wedbush analyst Dan Ives expressed a more bullish outlook, maintaining an Outperform rating and raising the target to $140 1. Ives referred to Palantir as a "generational tech name" with the potential to reach a $1 trillion market cap over the next three years.
Source: The Motley Fool
Stock Performance and Market Reaction
As of Thursday's trading, Palantir shares were up 3.86% at $125.24, reflecting investor enthusiasm for the company's growing government contracts and commercial success 1. The stock has seen a remarkable 500% surge over the past year, pushing its market capitalization to approximately $284 billion as of Wednesday's close 1.
Future Outlook and Challenges
Despite discussions about potential government spending cuts, Palantir continues to secure significant contracts, demonstrating the perceived value of its AI-driven solutions in military and intelligence applications 2. However, the company faces the challenge of maintaining its growth trajectory in a potentially flat defense budget environment, as the Trump administration is expected to keep the defense base budget unchanged in fiscal year 2026 2.
Palantir's stock performance and recent contract wins highlight its position as a leader in AI analytics and decision-making technologies. As the company continues to expand its presence in both government and commercial sectors, investors and analysts alike will be closely watching its ability to maintain its impressive growth and market valuation in the evolving landscape of AI-driven technologies.
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