Santa Claus May Be Coming Early for Palantir Investors

Key Points

• Palantir stock is surging toward its all-time high as new AI-driven contracts boost confidence in multi-year revenue growth.
• Recently announced partnerships with the U.S. Navy, NVIDIA, CenterPoint Energy, and Teton Ridge strengthen Palantir’s position as a scalable AI infrastructure leader.
• Technical momentum, improved deal visibility, and rising investor demand suggest PLTR may be entering a year-end upside phase.

Palantir Technologies Inc. NASDAQ: PLTR stock is up approximately 22.6% since closing at $158.21 on Nov. 21. Significantly, the stock is now within striking distance of the all-time high of $207.52 it made after it reported earnings on Nov. 3.

The move higher isn’t based on a change in sentiment about the PLTR stock valuation. Even after the rally, Palantir’s valuation incorporates significant future growth, with a market cap exceeding $400 billion and a triple-digit price-to-earnings multiple. Even among tech stocks, that's an abnormally stiff premium. 

That leaves the stock vulnerable to sharp pullbacks on any disappointment, but it also means incremental evidence that the company can monetize AI at scale tends to trigger outsized upside reactions as bears are forced to re‑rate their models.

Analysts Stay Cautious, But the Market Is Repricing Palantir Fast

Still, no analysts have raised their price targets. In fact, many analysts still believe that Palantir is overvalued based on conventional metrics.

It’s also important to remember that a key reason that PLTR stock dropped sharply was the report that Michael Burry had made a bearish bet against Palantir. As investors will recall, in early November, Burry disclosed he had bought put options on five million shares of PLTR stock.

That’s not the same thing as shorting the stock, but it was all that some investors needed to take some profits. It also shows how crowded skepticism can become, setting the stage for a powerful squeeze when the narrative shifts back to execution.

Palantir Broadens Its AI Ecosystem With Energy, Sports, and Defense Deals

The bull case for Palantir centers around the company’s ability to grow into its valuation. In the company’s third-quarter earnings report, Palantir delivered 18% year-over-year revenue growth.

But with a company like Palantir, the focus is on future growth. That bull case was supported by the announcement that it had closed 204 deals of at least $1 million in the quarter, with approximately 25% of those deals having a value of at least $10 million.

However, the company continues to announce new partnerships that will be announced in its fourth-quarter report in February. Since December 1, the company has announced the following:

• On Dec. 4, the company launched Chain Reaction. This is what Palantir describes as the operating system for U.S. AI infrastructure. The company is partnering with CenterPoint Energy and NVIDIA Corp. NASDAQ: NVDA on the project.

• On Dec. 6, Palantir announced a new effort with Teton Ridge to bring real-time AI and computer vision to rodeo, accelerating and elevating the sport experience for athletes, fans, and partners. This is another collaboration with NVIDIA.

• On Dec. 10, the company announced it was partnering with the U.S. Navy to modernize shipbuilding supply chains and accelerate shipbuilding.

These deals give investors exactly the kind of visibility that justifies “grow‑into‑it” optimism. The Navy contract extends Palantir’s role as a core decision platform for U.S. defense and should drive multi‑year, high‑margin revenue from a mission‑critical domain where switching costs are high.

Chain Reaction and the NVIDIA‑backed sports and energy partnerships showcase how Palantir can reuse the same AI and data infrastructure across very different verticals, reinforcing the idea that each new logo is less a one‑off win and more validation of a scalable AI operating

PLTR Technical Setup Points to More Upside Into Year-End

Palantir’s recent move looks less like a one‑off news pop and more like a momentum phase where fundamentals, technicals, and narrative are finally lining up in the same direction.

The chart shows PLTR regaining its uptrend after a brief shakeout, with the price back above the 50‑day moving average near 180 and pushing toward prior highs. The 14‑day RSI is in the low 60s, a zone that reflects strong but not yet “blow‑off” momentum, leaving room for a continuation move into year‑end rather than an obviously overbought setup. Volume has expanded on up days since late November, suggesting investors are buying dips rather than using strength to exit positions.