Palantir Stock Jumps 14% Amid Nvidia Partnership and Analyst Upgrade to Buy

Key Points

Shares of Palantir Technologies (NASDAQ: PLTR) rose 14% this past week, driven by news of a strategic collaboration with an artificial intelligence (AI) giant and a positive analyst upgrade.

Image source: The Motley Fool.

Strategic Alliance with Nvidia

Palantir is partnering with Nvidia (NASDAQ: NVDA) to streamline U.S. government access to open-source AI models.

Through integration of Palantir’s sovereign AI operating system with Nvidia’s Nemotron open models and accelerated computing infrastructure, government agencies stand to gain improved cost efficiency, enhanced safety protocols, and greater customization while maintaining strict data security standards.

This partnership is expected to further accelerate growth in Palantir’s robust government segment, which reported an 84% year-over-year revenue surge to $687 million in the first quarter.

Analyst Upgrade and Price Target

D.A. Davidson analyst Gil Luria has raised his outlook on Palantir shares, upgrading the stock from neutral to buy and setting a $175 price target.

Luria argues that building directly on proprietary models from companies like OpenAI and Anthropic exposes businesses to significant risks, as demonstrated by Anthropic’s recent temporary service disruption following regulatory pressure. In contrast, Palantir’s platform—which provides access to AI models from nearly all major providers—offered resilience during such events, ensuring minimal downtime for enterprise clients.

Should You Invest in Palantir?

Palantir’s strong fundamentals and strategic positioning in the government AI space support continued momentum. Investors may also consider exploring diversified options through services like Stock Advisor, which recently highlighted 10 stocks believed primed for long-term growth.

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