Palantir Technologies (PLTR) shares rallied over 5% on Monday, adding to a previous session's 5.3% gain, as the company announced a new strategic partnership with Nvidia (NVDA) to deliver custom AI models to U.S. government agencies. The rebound snapped a brutal seven-day losing streak that saw the stock hit a fresh 52-week low of $107.27.
The partnership will integrate Nvidia’s Nemotron AI models with Palantir’s infrastructure products—including AIP, Foundry, Ontology, and Apollo—to create a secure environment for deploying large language models in classified government settings. CEO Alex Karp emphasized that the deal allows customers to leverage advanced AI without risking sensitive data exposure.
Despite the optimism, investors remain cautious. A separate U.S. Army Next Generation Command and Control (NGC2) project, where Palantir serves as a partner to lead contractor Anduril Industries, lacks disclosed financial terms for Palantir. While the broader arrangement carries a potential $20 billion ceiling, no revenue allocation for Palantir has been confirmed, leaving the company’s earnings outlook murky.
The stock had been under heavy pressure, erasing roughly $40 billion in market value from its June 18 high of $128.47. Even with the rebound, PLTR trades well below its 50-day ($136) and 200-day ($159) moving averages. However, institutional interest remains: ARK Invest bought over 30,000 shares during the selloff, and analysts maintain a moderate buy consensus with an average price target of $185.35, suggesting 64% upside.
In a separate move, Palantir expanded its deal with Surf Air Mobility (SRFM), rolling out aviation software to more private aviation customers. The back-to-back announcements, combined with the stock’s oversold technical condition, have given bulls short-term ammunition, though valuation questions persist.
