Shares of Palantir Technologies surged this week, rising about 15% after the United States launched military strikes on Iran. The rally made Palantir one of the strongest performers among large technology companies, even as the broader market struggled.
The tech-heavy Nasdaq Composite declined during the same period as investors reacted to rising oil prices and weaker economic data. Major technology firms such as Apple and Google also slipped, highlighting how unusual Palantir’s gain was.
Investors see Palantir as a likely beneficiary of prolonged military activity. The company earns roughly 60% of its revenue from government contracts and provides software tools used by the U.S. military and intelligence agencies. Analysts believe continued geopolitical tension could increase demand for its data analysis and artificial intelligence platforms.
Analysts at Rosenblatt raised their price target for Palantir shares to $200 while maintaining a positive outlook. They pointed to the company’s expanding government pipeline and the possibility of additional defense contracts in the near future.
Concerns about Palantir’s partnership with AI company Anthropic did little to slow the rally. The U.S. government recently restricted Anthropic’s technology from defense contracts after disagreements about how its models could be used in areas such as autonomous weapons and surveillance.
Despite that decision, analysts say Palantir can switch to alternative AI providers if needed. The company’s platforms support multiple AI systems, allowing it to adapt without major disruption.
Palantir previously signed a $10 billion contract with the U.S. Army and continues to expand its role in military technology and intelligence analysis.
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