Palantir Stock Eyes New Highs, Boosted by Boeing Partnership

Key Points

• Palantir stock has rebounded nearly 18% from its August decline and is trading near all-time highs.
• A new AI partnership with Boeing Defense strengthens Palantir’s credibility in both government and commercial markets.
• Despite high valuation concerns, short sellers remain on the defensive as momentum holds above key technical levels.

After dropping about 18% after hitting its all-time high in early August, Palantir Technologies Inc. NASDAQ: PLTR has nearly recaptured all those losses. In fact, on Sept. 24, Bank of America gave PLTR stock a $215 price target, giving it the most bullish target of the Palantir analyst forecasts on MarketBeat.

The recent rally is once again giving short sellers fits. Palantir has a high valuation even among other stocks in the frothy tech sector. However, it continues to be a difficult stock to short. The company’s ability to win partnerships that will drive long-term growth is a key reason for that.

A recent example is Palantir’s partnership with Boeing Defense, Space & Security (BDS). The two companies will work together to integrate artificial intelligence (AI) systems and software across the company’s factories and programs.

AI Integration at Boeing Defense

The partnership between Boeing and Palantir is a win-win. For its part, Boeing can use Palantir’s Foundry platform to standardize data analytics and insights across the company’s network of factories. BDS operates over a dozen production lines that manufacture military aircraft, helicopters, satellites, spacecraft, missiles and weapons.

For Boeing, the benefits of the partnership extend beyond efficiency gains. The company has struggled with delays, cost overruns, and reliability concerns in both its defense and commercial divisions. By adopting Palantir’s AI-driven analytics, Boeing can better forecast supply chain disruptions, standardize production data, and improve aircraft readiness rates.

BDS will also use Palantir’s AI expertise and capabilities to assist with several undisclosed classified and proprietary efforts focused on supporting its military customers' most sensitive missions.

This is one part of Boeing’s efforts to modernize its operations and reassure its investors and other stakeholders that it’s leveraging advanced technologies to improve the efficiency and reliability issues that have weighed on its performance and reputation in the last two years.

A Commercial and Defense Win for Palantir

The Boeing partnership is significant to Palantir shareholders for two key reasons. First, it builds on the company’s existing relationships with the U.S. military, for which Palantir is already becoming the default operating system.

For Palantir, the partnership underscores its growing role as a trusted provider of mission-critical solutions in both government and commercial sectors. With over 40% of revenue now coming from commercial customers, Boeing’s endorsement strengthens Palantir’s credibility as it pursues additional contracts across aerospace and industrial markets.

Short Sellers on the Defensive

PLTR stock closed at $182.42 on Sept. 30. That puts the stock within a whisker of its all-time high (ATH) around $186. The stock is building near-term momentum above its 50-day simple moving average (SMA), which is currently at $167.21.

Recent price action continues to be bullish, with the 50-day SMA serving as a reliable area of support during the summer. This continues to be Palantir’s technical floor and is about 20% higher than the analysts’ consensus price.

However, the rally has left PLTR stock extended above that 50-day SMA. With an RSI around 64 and climbing, the stock could soon be in overbought territory. That means momentum traders may find resistance near the ATH.

If the stock does pull back, it could test the 50-day SMA, particularly if profit-taking kicks in or if market sentiment weakens. A break below $167 could signal a deeper retracement, but a bounce from that level would reinforce the broad, long-term uptrend.

Investors with a long position shouldn’t change their strategy, but traders should watch for elevated volume or a bearish MACD crossover as potential early signals of a new pullback. On the other hand, every day when PLTR stock closes above its 50-day SMA reinforces the stock’s underlying strength.