Palantir Stock (PLTR) Hits New 52-Week High as Investors Cheer Federal Data Deal

Shares of the technology giant Palantir Technologies (PLTR) hit a new 52-week high of $134.48 on June 1 as investors cheered the company’s latest major federal contract with the Trump administration. Including yesterday’s gains, PLTR stock is now up about 74.6% year-to-date.

Under the new deal, PLTR will build a new platform that will combine government records from Social Security, the IRS, immigration, and more, creating a centralized database.

This deal points to Palantir’s long-term role in U.S. government operations, potentially leading to more contracts in defense, security, and intelligence.

What’s Driving PLTR Stock’s Rally?

Palantir stock’s rally in 2025 so far is driven by strong AI adoption and strategic partnerships. The company’s Artificial Intelligence Platform (AIP) is gaining traction across defense, healthcare, and enterprise sectors, raising optimism among investors.

Also, PLTR’s government contracts remain a key growth driver. Recent major deals include, Fannie Mae partnership to enhance fraud detection using AI and the NATO partnership to deploy AI-driven military systems, which bolster Palantir’s global expansion.

At the same time, Palantir’s efforts to reduce reliance on government deals to focus on corporate AI solutions support long-term growth. U.S. commercial sales rose 71% year-over-year in the last quarter. Importantly, PLTR’s full-year outlook beat estimates, with projected sales between $3.89 billion and $3.9 billion.

Meanwhile, some analysts warn about the stock’s high valuation. PLTR trades at a P/E ratio of 575.5x, much above the Technology sector’s median of 27.12. However, if Palantir keeps expanding its AI offerings and secures new contracts, it could justify its premium valuation.

Is PLTR Stock a Good Buy?

Turning to Wall Street, PLTR stock has a Hold consensus rating based on three Buys, 11 Holds, and four Sells assigned in the last three months. At $100.13, the average Palantir price target implies a 24.17% downside potential.

See more PLTR analyst ratings