Shares of Palantir Technologies (NASDAQ: PLTR) jumped more than 6% during regular trading on Tuesday after Wedbush Securities reiterated its Outperform rating and maintained a price target of $120.
The bullish stance follows a major announcement: Palantir has secured a contract to provide NATO with an advanced AI-powered military system. The deal highlights the company’s increasing role in global defense and artificial intelligence applications.
The agreement, disclosed on March 25, involves the deployment of Palantir’s Maven Smart System, which integrates General AI, machine learning capabilities, and large language models to enhance the Alliance’s warfighting capabilities.
Palantir says the Maven system will improve NATO’s data management, intelligence fusion, and battlespace awareness while streamlining decision-making in complex operations. Although the financial terms were not disclosed, the system is expected to become operational within 30 days.
Wedbush analyst Dan Ives described the NATO contract as a “significant win” for Palantir. He emphasized that the deal demonstrates the company’s growing influence in the federal space, particularly in AI-driven defense technologies.
Despite ongoing concerns over defense spending, Ives believes Palantir’s specialized software solutions are well-positioned to meet the evolving demand for secure and efficient AI implementation. He expects the company to remain a key player in managing sensitive military and intelligence workloads.
The NATO contract is expected to boost Palantir’s market share within the U.S. Federal market, where the company is already a trusted partner in AI-driven projects. The U.S. government’s reliance on Palantir’s capabilities is anticipated to grow, particularly as federal spending on AI technology in North America and Europe is expected to surge in the coming years.
Ives also noted that Palantir is strategically positioned to capitalize on a “tidal wave” of federal spending on AI technology. He believes the company’s ability to navigate the disciplined federal spending environment will act as a growth catalyst as it continues to expand its influence across federal and commercial sectors.
Palantir Technologies (NASDAQ: PLTR) is set to report its first-quarter 2025 earnings on Monday, May 5, after U.S. markets close.
