Palantir Stock Catapults 9% Higher as War Tech Demand Surges

Palantir PLTR -0.46% ▼ has been on a tear lately, with its stock price catapulting by almost 9% over the last five trading days. The biggest reason for this jump is the rising tension in the Middle East. As the U.S. military deals with conflict involving Iran, investors are looking at Palantir as a key defense play. The company already has a massive $10 billion framework deal with the U.S. Army and a $448 million contract with the Navy.

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On top of the war news, a major shift at the Pentagon is helping Palantir. The Department of Defense recently told agencies to stop using AI models from Anthropic because of a dispute over safeguards. This has led many to believe that Palantir will step in to fill the gap, winning even more government work as other AI firms fall out of favor.

Palantir’s Business Is Growing Quickly

The company’s business is growing at a staggering pace. In its latest report, revenue jumped 70% to $1.41 billion. While its government work is the big news right now, its commercial side, helping regular businesses use AI, is actually growing even faster, up 137% in the U.S.

Looking ahead, the company expects to bring in over $7 billion in 2026. This would be a 61% jump from the previous year, which is well above what most analysts on Wall Street were expecting.

There Are Conflicting Opinions on Palantir Stock

Despite Palantir’s success, Wall Street is currently split between AI supercycle believers and valuation skeptics.

Bulls at Citi Research C +0.06% ▲ , led by Tyler Radke, and Bank of America’s BAC -1.52% ▼ Mariana Perez Mora have pushed price targets as high as $255 and $260. These analysts argue that Palantir is the primary winner of a massive shift in military and corporate AI spending. They point to the company’s 127% “Rule of 40” score as proof that it can grow rapidly while staying highly profitable.

However, the “Big Short” investor Michael Burry and analysts at Goldman Sachs GS +1.29% ▲ , led by Gabriela Borges, remain far more cautious. Burry recently suggested the stock’s fair value could be as low as $46, warning that the current trading multiple of over 180 times earnings is a massive bubble. While retail traders remain overwhelmingly bullish, institutional players are still debating whether the company can actually hit its lofty $7 billion revenue goal for 2026 without a major correction first.

Is Palantir Stock a Good Buy?

Turning to Wall Street, PLTR stock has a Moderate Buy consensus rating based on 14 Buys, four Holds, and two Sell ratings assigned in the last three months. At $191.76, the average 12-month PLTR price target implies a 22.6% upside potential.

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