Palantir’s shares soared more than 18% in premarket trading, following a forecast of upbeat annual revenue driven by the growing demand for its data analytics services, particularly from businesses eager to adopt generative AI technologies. The company’s market capitalization is set to increase by about $35 billion, based on current share prices of $99.31.
The firm’s platform, AIP, has seen strong growth as businesses accelerate investments in AI, utilizing the platform to test, debug, and evaluate AI scenarios. Russ Mould, an Investment Director at AJ Bell, remarked that Palantir is capitalizing on the AI wave, with industries making substantial technological investments.
Palantir’s co-founder Peter Thiel’s company is now viewed as a major player in the AI sector. Matt Britzman, Senior Equity Analyst at Hargreaves Lansdown, compared Palantir’s AI success to Michael Jordan’s dominance in basketball, describing the company as a leader delivering game-winning results.
Palantir’s Chief Revenue Officer, Ryan Taylor, reiterated that the company would discourage commercial clients from using DeepSeek’s AI models but would continue to work with those who opt for them. U.S. officials are currently reviewing the national security implications of DeepSeek, with concerns raised by White House press secretary Karoline Leavitt.
Additionally, Taylor noted that new tariffs imposed by U.S. President Donald Trump could further boost demand for Palantir’s analytics services, especially in supply chain and logistics management.
Following the announcement, at least nine analysts raised their price targets for Palantir, with Morgan Stanley upgrading its rating from ‘underweight’ to ‘equalweight,’ recognizing Palantir as a significant player in the AI space.
