Palantir's Stock Volatility Amid AI Advancements and Defense Partnerships

Palantir Stock Tumbles As Broader Tech Weakens: What's Going On? - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. PLTR are trading lower Monday amid broader market weakness following cautious comments from Federal Reserve Chair Jerome Powell last week and President Donald Trump's criticism of Powell. What To Know: On Wednesday, Powell warned that tariffs could push inflation higher and said the economy is showing signs of slowing, which spooked investors and raised concerns about future federal and commercial spending -- key revenue sources for Palantir. This drop comes despite several major developments for the company over the past month. Palantir was named in reports linking it to President Trump's proposed missile defense system, the "Golden Dome," alongside SpaceX and defense firm Anduril. Around the same time, the company announced a new partnership with Anthropic to bring its Claude AI model to U.S. government agencies through Palantir's FedStart platform. Palantir also closed a fast-tracked deal with NATO for its Maven Smart System NATO (MSS NATO), a military AI platform designed to support intelligence and battlefield operations. The deal went from concept to signed contract in six months, a fast timeline for NATO procurement. Despite these wins, Morgan Stanley cut its price target on Palantir from $95 to $90 while maintaining an Equal-Weight rating. The stock is still up over 300% in the past year but is now reacting more to macroeconomic risks than individual contract wins. The stock remains technically strong in some areas, trading above its 20- and 200-day moving averages, but it dipped below its 50-day average and is showing mixed momentum signals. PLTR Price Action: Palantir shares were down 4.52% at $89.54 at the time of writing, according to Benzinga Pro. Read Next: Wall Street Sinks, Dollar Slides As Trump Ramps Up Fed Attacks: What's Driving Markets Monday? Image Via Shutterstock. PLTRPalantir Technologies Inc$89.65-4.40%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.31Growth86.78Quality-Value2.86Price TrendShortMediumLongOverviewGot Questions? AskWhich defense contractors could benefit from Trump's plans?How might AI companies gain from Palantir's partnership?What impact will Federal Reserve actions have on tech stocks?Which government contractors are at risk from inflation?Could Palantir's defense contracts lead to more market interest?What are the potential effects of tariffs on tech spending?How will NATO partnerships influence tech investments?Which emerging tech stocks might thrive in this environment?What trends are evident in government tech spending?How might macroeconomic risks shift investor focus?Powered ByMarket News and Data brought to you by Benzinga APIs

Palantir Technologies Stock Is Up 12% This Week: What's Going On? - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc PLTR shares are up 12% to $104.70 since Monday's open, reversing a recent downtrend as markets responded positively to easing trade tensions and a major defense announcement. President Donald Trump's surprise retreat from escalating his tariff war with China, coupled with reassurances about Federal Reserve leadership, has lifted broader investor sentiment after days of volatility. The rebound followed warnings from top U.S. retailers about looming supply chain disruptions that could empty store shelves by summer. What Else: Adding to Palantir's momentum was confirmation of its expanded defense partnership with Northrop Grumman Corp on the U.S. Army's Tactical Intelligence Targeting Access Node (TITAN) program. The mobile battlefield intelligence system combines Palantir's AI capabilities with hardware from multiple defense firms, marking a strategic evolution from software-only offerings. The company delivered its first TITAN units earlier this year, and a teaser video released this week on X hinted at deeper collaboration with military contractors, including Anduril and L3Harris. Investors may also be optimistic ahead of Palantir's upcoming earnings on May 5. Read Also: Durable Goods Orders Jump 9.2% In March, But One Category Tells The Real Story How To Buy PLTR Stock By now you're likely curious about how to participate in the market for Palantir Technologies - be it to purchase shares, or even attempt to bet against the company. Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy "fractional shares," which allows you to own portions of stock without buying an entire share. In the case of Palantir Technologies, which is trading at $104.28 as of publishing time, $100 would buy you 0.96 shares of stock. If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to "go short" a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading - either way it allows you to profit off of the share price decline. According to data from Benzinga Pro, PLTR has a 52-week high of $125.41 and a 52-week low of $20.50. PLTRPalantir Technologies Inc$106.395.52%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.25Growth86.84Quality-Value2.58Price TrendShortMediumLongOverviewGot Questions? AskHow will Palantir's defense expansion impact stocks?Which defense contractors could benefit from TITAN?What effect will easing trade tensions have on tech stocks?How might retail supply chain disruptions affect investors?What opportunities exist in AI-driven defense technologies?Which military tech firms are positioned for growth?Will Palantir's earnings boost its stock further?How could Northrop Grumman's collaboration enhance its shares?What stocks might be affected by retailers' warnings?Are there short-selling opportunities in defense stocks?Powered ByMarket News and Data brought to you by Benzinga APIs

Palantir Stock Soars On Defense Deals: What's Going On? - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc PLTR have surged 19% this week, trading above $110 Friday afternoon and are higher by nearly 50% since April 4. Investors have responded positively to a combination of geopolitical developments and major defense partnerships. What To Know: The stock has broken past a key resistance level near $97.75, indicating renewed technical strength and the potential for a sustained uptrend. This comes as broader markets rebound this week following recent commentary from President Donald Trump on Federal Reserve leadership. However, Palantir's momentum is also being driven by its expanding footprint in defense and government tech. The company's headline-making collaboration with Northrop Grumman on the U.S. Army's Tactical Intelligence Targeting Access Node (TITAN) program is a strategic shift from its traditional software-only model. TITAN is a mobile battlefield intelligence platform that fuses Palantir's AI capabilities with advanced defense hardware, and the first units were delivered to the Army earlier this year. Palantir also recently announced a partnership with Google Public Sector to enhance cloud security compliance for federal agencies via its FedStart platform. As its May 5 earnings approach, Palantir has continued to position itself as not just a data analytics firm, but a defense technology leader. Read Also: Wall Street Rally Pauses, Tesla Heads For Strongest Week In 6 Months: What's Driving Markets Friday? How To Buy PLTR Stock By now you're likely curious about how to participate in the market for Palantir Technologies - be it to purchase shares, or even attempt to bet against the company. Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy "fractional shares," which allows you to own portions of stock without buying an entire share. In the case of Palantir Technologies, which is trading at $110.02 as of publishing time, $100 would buy you 0.91 shares of stock. If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to "go short" a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading - either way it allows you to profit off of the share price decline. According to data from Benzinga Pro, PLTR has a 52-week high of $125.41 and a 52-week low of $20.50. PLTRPalantir Technologies Inc$111.373.33%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.37Growth86.84Quality-Value2.64Price TrendShortMediumLongOverviewGot Questions? AskWhich defense contractors may follow Palantir's lead?How could Northrop Grumman benefit from this surge?What other AI defense technologies are emerging?Will government contracts increase for tech firms?Could cloud security firms see growth with FedStart?What impact will this have on Palantir's competitors?How might geopolitical tensions affect defense spending?Which ETFs could leverage defense technology trends?Could this lead to more investments in defense tech?What other partnerships could Palantir pursue next?Powered ByMarket News and Data brought to you by Benzinga APIs

Palantir Fell Today -- Is It Time to Buy the Stock? | The Motley Fool

Amid another day of big sell-offs for the broader market, Palantir (PLTR -3.10%) stock headed lower in Monday's trading. The software company's share price had been down as much as 4.8% in the daily session but closed out the day's trading down 3.2%. Meanwhile, the S&P 500 index fell 2.4%, and the Nasdaq Composite index fell 2.8%. The stock market took another bearish turn today as investors reacted to President Trump calling Federal Reserve Chair Jerome Powell a "major loser" and stating that the U.S. central bank should pre-emptively reduce interest rates in order to strengthen economic growth. Following news on Friday that the Trump administration is researching the legality of firing Powell, the comments caused uneasiness among investors seeking assurances on the macroeconomic front. With today's pullback, Palantir stock is now down 27% from its high. With the company valued at roughly 164 times this year's expected earnings and 56.5 times expected sales, Palantir has one of the most growth-dependent valuations of any major tech company on the market. But despite the outsized risk that typically comes with this kind of valuation profile, the business has characteristics that have made its stock impressively resilient amid this year's market volatility. Despite today's pullback, Palantir stock is up 20% in 2025. Palantir has established itself as a frontrunner in artificial intelligence (AI) software, and its offerings are helping business customers generate actionable insights from their data, seize huge efficiency improvements, and automate initiatives across categories. The company is also seeing rapid sales growth among government customers for defense and other applications, and its sales base being concentrated among the U.S. and its allies is a positive amid geopolitical uncertainty. Given the company's heavily forward looking valuation, there's no doubt that Palantir is a high-risk stock. But the tech specialist is also one of the strongest players in AI, and the long-term growth opportunities and foundations that are already in place suggest that the stock is a worthwhile buy for risk-tolerant investors.

At What Price Is Palantir Stock a Buy? | The Motley Fool

One stock that has massively outperformed the market this year is data analytics software company Palantir (PLTR 3.57%). As of market close on April 21, shares were up 20% year to date. This compares to a more than 12% decline for the S&P 500 over this same period. Even more, this is on top of an incredible 340% gain for the stock in 2024. Many investors watching the tech stock are likely wondering if it's too late to get in on this growth story. After all, even though shares are up year to date, the stock is down substantially from recent highs. Specifically, shares are down about 28% from a 52-week high of $125.41 achieved earlier this year. Is this a buy-the-dip opportunity? And, if not, at what price would the stock look like a good investment? Artificial intelligence (AI) has been an important investing theme for some time now as businesses ramp up their investments in the space in order to stay competitive in a rapidly changing technological landscape. As a provider of a data analytics platform that utilizes AI, Palantir has benefited from this. "Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution," said Palantir CEO Alex Karp in the company's fourth-quarter earnings release. "Our early insights surrounding the commoditization of large language models have evolved from theory to fact." With AI built deeply into its software platform, the company's total fourth-quarter revenue rose 36% year over year to $828 million. Growth was particularly strong in the U.S., where revenue rose 52% year over year. The best part? Palantir's business generates significant cash flow. For instance, the company generated $1.15 billion in cash from operations on revenue of about $2.87 billion in 2024. Looking ahead, management expects more impressive growth. The company guided for total 2025 revenue to increase 30.5% to 31% year over year. In addition, management said it expected its adjusted operating income to be between approximately $1.55 billion and $1.57 billion. This compares to adjusted operating income of about $1.3 billion in 2024. But here's where a prospective Palantir investor might go from interested to skeptical: valuation. The stock's current market capitalization of about $213 billion leaves virtually no wiggle room for error. Consider that Palantir's total GAAP earnings per share for 2024 was just $0.19. This puts the stock's price-to-earnings ratio at a jaw-dropping 474. But given that this is a company in its early innings of growth and is investing aggressively in its growth opportunities, a better valuation metric may be price-to-sales. But even Palantir's price-to-sales ratio is difficult to comprehend. It seems like the same hype that has driven businesses to aggressively invest in AI at incredible speed has carried over to Wall Street. Investor sentiment for AI is extremely high. Palantir, with its impressive top-line growth and cash generation, has been caught up in this hype, and the stock has soared far beyond rational levels. What is the stock's price-to-sales ratio today? 78. So, at what price would Palantir shares look attractive? Given the fast-changing and disruptive nature of artificial intelligence, investors can't count out the idea of Palantir being disrupted in the future -- just as it has disrupted other tech companies. For this reason, investors should demand a valuation that bakes in significant uncertainty. Of course, investors also need to be willing to pay up for the company's extraordinary growth. Putting these two contradicting ideas together, a reasonable valuation to consider buying a stock like this could be about 25 times sales -- a huge valuation premium over a more established software company like Microsoft, but far below Palantir stock's valuation today. This means shares would need to lose about two-thirds of their value, falling to somewhere around $30.50, before I'd even consider buying them. I'm sure that Palantir bulls would vehemently disagree with my analysis. They would probably say I lack vision or that I don't understand the company. Both of these statements might be true. But I'd rather put my money somewhere where I feel like I'm investing instead of speculating. Sure, it's possible that a stock like Palantir lives up to even a speculative valuation. But history is littered with examples of tech stocks that became overvalued and subsequently delivered poor returns to shareholders for years after the momentum cooled. While Palantir's business will likely keep doing well, investors should think twice before they bet on the stock at its current level.

Palantir Is Soaring Today. Is the Stock a Buy Right Now? | The Motley Fool

Palantir (PLTR 8.27%) stock is jumping in Wednesday's trading thanks to a combination of macroeconomic and business-specific catalysts. The company's share price was up 8% as of 1 p.m. ET. Meanwhile, the S&P 500 had risen 1.8%, and the Nasdaq Composite was up 2.6%. The Trump administration is signaling that it would like to get a trade deal done with China in the near term and bring tariffs between the two countries lower, and the stock market is rallying today in response. In addition to a bullish development on the macroeconomic front, Palantir stock also seems to be getting a boost from news that the company's FedStart platform for governmental compliance and operational scaling is being integrated into Alphabet's Google Cloud infrastructure service. As of this writing, Palantir stock is now up roughly 35% year to date. Palantir looks to be one of the strongest overall players in the artificial intelligence (AI) software space, and fantastic sales momentum among both public and private-sector customers makes it clear that its services are winning in the market. Heavy geographic sales concentration among the U.S. and its allies should also continue to provide some protection against trade war volatility. On the other hand, the stock is trading at roughly 183 times this year's expected earnings and 63 times expected sales -- and that means there's a very high level of investment risk involved. Despite its incredibly growth-dependent valuation, I think there's a good chance that those who take a long-term, buy-and-hold approach to Palantir stock at today's prices will see strong returns. But investors should move forward with the understanding that macroeconomic and geopolitical conditions will likely continue to be volatile in the near term, and there's still a lot of work to be done and uncertainty connected to the current trade war dynamics. With that in mind, I would recommend that investors interested in building a position in Palantir take a dollar-cost-averaging approach rather than buying all at once in today's rally.

Is Palantir Stock a Buy Now? | The Motley Fool

Palantir Technologies (PLTR 4.63%) stock rallied impressively in 2024 after it became evident that the software platforms and data analytics specialist benefits from the fast-growing demand for artificial intelligence (AI) software. The stock started 2025 on a solid footing as well. However, since hitting an all-time high in mid-February, the stock price has fallen as much as 40% and is currently trading almost 14% down. Palantir's decline can be attributed to the broader stock market pullback triggered by the tariff-fueled trade war. Despite the price drop, the demand for Palantir's AI software solutions remains solid, as evidenced by a recent military contract that the company landed. Moreover, the AI software platforms market that Palantir serves is expected to generate $153 billion in annual revenue in 2028, suggesting a compound annual growth rate of 41% over a five-year period. It won't be surprising to see the demand for Palantir's AI software solutions jump higher in the coming years. So, should investors consider buying Palantir stock following its recent pullback to take advantage of the rapid growth in the AI software platforms market? One of the reasons why Palantir stock pulled back following its strong start to the year was the valuation. The stock was already expensive at the end of 2024, as is evident from the chart below, and it continues to trade at a premium valuation even now. With investors in risk-reduction mode over concerns about economic uncertainty that has them moving capital toward safer assets, there is a chance that Palantir stock could remain under pressure near term. If that's indeed the case, now might be a good time to start accumulating shares of Palantir because it's showing solid indications that it can justify its inflated valuation. Despite the tariff-fueled market sell-off, Palantir stock is up 42% so far in 2025. The stock has shown resilience, and that can be attributed to the tariff-resistant nature of the company's business. Of course, higher input costs on account of tariffs could lead Palantir's customers to cut spending, but the efficiency gains that its Artificial Intelligence Platform (AIP) has been delivering could shield it from such cuts. Palantir's AIP allows customers to integrate generative AI solutions into their business operations. Customers using AIP have been able to reduce operating costs and/or enhance productivity, according to management reports on the company's February earnings conference call. Chief Technology Officer Shyam Sankar offered up a couple of examples: We have been working with a large multinational bank to automate core back office processes. What used to take five days now takes three minutes. Much more than the labor savings, this improvement eliminates historical constraints on the middle office and now enables the bank to create entirely new and differentiated financial products. We're working with the top engineering and construction firm to automate the identification of risks across tens of thousands of pages of technical documents, replacing months of arduous manual reviews with AI labor that can flag major risks to engineers in minutes. Not surprisingly, Palantir's customers have been increasing the deployment of its software solutions and are signing bigger contracts with the company. This explains why Palantir's total contract value shot up an impressive 56% year over year in the fourth quarter of 2024 to $1.8 billion. That was faster than the 36% growth in the company's top line during the quarter. Even better, Palantir's earnings grew at a much stronger pace of 75% from the year-ago period. This isn't surprising as bigger contracts from existing customers mean that the company doesn't need to spend more money on gaining new business from them, which contributes toward positive unit economics. This explains why Palantir seems capable of easily outpacing Wall Street's growth expectations. Consensus estimates project a 35% increase in the company's earnings in 2025, but that estimate has headed higher significantly in the past few months. Given that Palantir already has a terrific revenue pipeline of $5.4 billion, which is evident from its remaining deal value at the end of 2024, it could very well exceed its 2025 revenue guidance of $3.75 billion. The remaining deal value refers to the total remaining value of contracts that have yet to be fulfilled at the end of a quarter, and this metric shot up 40% year over year in Q4 thanks to a sharp jump in the number of contracts Palantir signed. The massive opportunity in the AI software platforms market means that Palantir could continue gaining more business at a nice clip, especially considering its solid position in this space. Third-party reports suggest that Palantir's AI software platform is better than its peers, which is why the company should be able to attract more customers and corner a bigger share of the huge end-market opportunity on offer. Palantir's outstanding growth seems here to stay despite the tariff turmoil as it is one of the leading players in a rapidly growing space and is helping customers improve productivity and achieve cost savings with the help of AI. All this makes Palantir worth buying since it can justify its valuation by delivering better-than-expected numbers, which could lead the market to reward this growth stock with more upside.

Where Will Palantir Stock Be in 1 Year? | The Motley Fool

Predicting where any company will be in one year is always guesswork at best, but it's become increasingly difficult amid President Donald Trump's tariff rollout. The tech sector has felt the influx of uncertainty, sending the Nasdaq Composite tumbling since tariffs were announced. Palantir Technologies (PLTR 7.37%) stock initially fell along with so many other stocks on concerns about how tariffs might affect operations, but it has since rebounded and is bucking the larger market's downward trend. Palantir's stock is up nearly 35% since the beginning of the year, compared to the Nasdaq's 13% decline. But where will Palantir stock be one year from now, given the ongoing market uncertainty, tariff concerns, and a growing fear of a potential economic slowdown? Here's what could happen. To better gauge Palantir's potential for the year ahead, it can help to look back and study its momentum from the previous year. Palantir's trajectory over that time looks quite promising. The company ended 2024 with revenue of nearly $2.9 billion, a 29% jump from the previous year. The growth was mainly fueled by Palantir's U.S. revenue, which rose 38% to $1.9 billion. Adjusted earnings per share rose 64% to $0.41, and Palantir ended the year with $1.25 billion in free cash flow -- up from $731 million in 2023. Palantir also finalized an impressive amount of new deals in its fourth quarter, closing 129 deals worth at least $1 million, 58 deals of at least $5 million, and 32 deals of at least $10 million. Palantir's Chief Revenue Officer, Ryan Taylor, said, "We accelerated through the end of the year, and we remained full throttle." Momentum indeed. Unsurprisingly, Palantir's management issued strong guidance for 2025, including a sales forecast that expects 29% growth to $3.75 billion and adjusted free cash flow growth of 28% to $1.6 billion. Both of those figures are at the midpoint of guidance. President Trump's chaotic tariff rollout has rattled many companies, and some have been forced to adjust their expectations for the upcoming year. That's understandable, given all the uncertainty. But Palantir may be able to ride out this uncertainty better than most. Palantir is a software-based artificial intelligence (AI) company, making it less likely to feel adverse effects from the various tariffs being enacted or threatened. It also counts the U.S. government as a key customer -- accounting for 43% of all 2024 revenue -- which may help it ride out a potential economic slowdown, if one arises. Not only that, but Palantir is also positioning its AI data analytics software tools to serve as potential help for companies looking to navigate tariff uncertainty and find new efficiencies. Palantir isn't completely immune to an economic slowdown, of course, but the fact that its business is software-based and that the U.S. government has been eager to tap into Palantir's AI services could help shield the company from some negative economic impacts. While Palantir could likely continue growing over the next year, the stock's sky-high valuation is a potential headwind. Palantir's stock has a forward price-to-earnings multiple of 172, which is very expensive by any measure. With the stock trading at such a premium during an uncertain time in the market, it's hard to justify paying the high price. Sure, Palantir could likely continue growing over the next year. But if tariffs do spark a slowdown, the market could get very jittery, and Palantir's stock could fall along with it. Considering its current premium, it might be better to hold off from buying Palantir right now to see if a better buying opportunity opens up as more economic and market uncertainty unfolds.

Palantir Surged Again Today -- Is the Artificial Intelligence (AI) Stock a Buy? | The Motley Fool

Palantir (PLTR 6.89%) stock recorded another day of big gains in Thursday's trading. The company's share price closed out the day up 6.9% amid the backdrop of a 2% gain for the S&P 500 and a 2.7% gain for the Nasdaq Composite. After big gains Tuesday and Wednesday, Palantir stock moved higher again in Thursday's trading as investors reacted to reports suggesting that the U.S. is making negotiations with large trade partners a priority. Despite comments from Chinese officials suggesting that meaningful discussion with the U.S. on a trade deal is not underway, the Trump administration has said that negotiations are in the works and generally adopted public positioning that suggests the desire to get a deal done. Other reports suggest that the U.S. and India may have reached foundational terms for a bilateral trade deal. With today's gains, Palantir stock is now up 42.5% in 2025. Shares are also still down 13.5% from their high. Conventional valuation approaches likely suggest that Palantir stock is close to untouchable at today's prices. With the company valued at approximately 194 times this year's expected earnings and 97 times expected sales, the software specialist's core valuation metrics could look hard to justify even in the context of very strong performance for the business over the last year. Along those lines, investors without a high tolerance for risk and volatility should probably steer clear of the stock at current levels. The bull case for Palantir hinges on the company having a stellar long-term growth outlook in the artificial intelligence (AI) services space and having made the right bets on software for operating-system-level integration for AI technologies. To Palantir's credit, its recent wins make it hard to argue against the company's strategy and execution. If you think that Palantir's lead in AI software is driving a paradigm shift on public sector and private sector operations, there are still good reasons to be bullish on the stock right now. But investors should proceed with the understanding that the valuation profile here comes with significant downside risk.

Prediction: Palantir's New Deal With NATO Could Revolutionize How Artificial Intelligence (AI) Is Used in the Public Sector. Here's Why. | The Motley Fool

NATO recently partnered with Palantir and will be deploying the company's Maven Smart System. The technology sector has gotten off to a rough start this year. According to data from Yahoo! Finance, the tech sector has declined by 13.6% in 2025 (as of April 24). Underneath the broader technology umbrella, the software infrastructure subsector has dropped by roughly 10% on the year. One software stock that has demonstrated some resiliency compared its peers is data analytics platform Palantir Technologies (PLTR 4.63%). As of this writing, shares of Palantir have gained 33% this year -- making it the best performer among Nasdaq-100 stocks. One of the catalysts fueling enthusiasm for Palantir is the company's consistent demonstration showing how its artificial intelligence (AI) software applications are used by large enterprises. A few weeks ago, Palantir struck a partnership with the North Atlantic Treaty Organization (NATO). Unsurprisingly, shares experienced a brief jump on this news. Below, I'm going to break down why this deal with NATO could be a game changer for how AI is deployed in the public sector. More importantly, I'll make the case for why Palantir sits in a unique position to take advantage of the public sector's interest in AI and how the company appears to be supercharged for even more growth. Palantir's AI applications are sold across the public and private sectors. On the commercial side of the house, large corporations use Palantir to help them organize data across disparate systems and synthesize these workloads into actionable insights. On the government side, Palantir helps the Department of Defense (DOD) on different military and stealth operations. Per the company's annual filing, Palantir bifurcates its revenue into two categories: government and commercial. In 2024, roughly 55% of Palantir's total revenue stemmed from the government. Taking this one step further, Palantir's 2024 revenue was split into the following geographic demographics: 66% for the U.S., 11% for the United Kingdom, and 23% for the rest of the world. Given the data above, it's clear that Palantir relies on the public sector for much of its deal flow. In addition, the company's heavy concentration in the U.S. signals that Palantir's presence overseas is still in early stages. If you aren't familiar with NATO, the organization represents an alliance comprising 32 members -- 30 European countries, Canada, and the U.S. In essence, NATO is a coalition of different nations that have agreed to defend one another militarily. According to publicly available information, NATO will be deploying Palantir's Maven Smart System (MSS) to assist with a number of military and battlefield operations. Palantir's MSS brings a unique blend of large language models, generative AI, and machine learning to mission-critical operations ranging from "intelligence fusion and targeting, battlespace awareness and planning, and accelerated decision-making." While NATO is not a government agency per se, its partnership with Palantir could represent a strategic channel for international lead generation as the company looks to grow beyond the U.S. Furthermore, given Palantir's existing ties to the DOD and now its relationship with NATO, I think it's highly likely that U.S. military allies may choose to evaluate how Palantir's capabilities can assist them for their own defense protocols. Although I am encouraged by the NATO deal, this progress alone does not warrant buying Palantir stock. It still remains to be seen how this deal impacts the company's growth over time, and if it does indeed help Palantir segue into more international markets and government business outside the U.S. military. Based on the trends in the chart above, Palantir trades at an enormous premium compared to other leading players in the software realm on a price-to-sales basis. In some ways, I think this premium could imply that some future growth prospects are already baked into Palantir's share price -- as optimism appears to be on the rise, despite ongoing turbulence in the capital markets and the economic uncertainty around new tariff policies around the globe. If you are a growth investor, I think the most prudent strategy for investing in Palantir is to use dollar-cost averaging over a time horizon of many years. This method removes any trepidation you may feel related to timing, and instead allows you to invest in a high-quality AI business at different price points over time.