Palantir Technologies (PLTR) has defied expectations in the first half of 2025, emerging as the top-performing stock in the S&P 500 with a staggering gain of 80%. This year-to-date performance significantly outpaces the 5.5% rise in the S&P 500 index. The surge is mainly driven by soaring demand for AI solutions and a series of lucrative government contracts that continue to boost investor enthusiasm. However, its stretched valuation is raising caution among investors who are now considering booking profits.
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Is it Time to Sell PLTR Stock?
Selling PLTR stock now could allow investors to lock in substantial gains and reduce exposure to a potential tech or broader market pullback. On the other hand, keeping the stock lets you stay invested if the AI and government contract growth continues.
Palantir’s rally may be far from over, with momentum continuing to build rather than fade. Adding to the optimism, broader market sentiment is turning increasingly bullish on tech stocks. As a result, some investors may begin to view a $200 price tag for PLTR as justifiable. Overall, investor confidence in Palantir remains strong, largely due to its solid foothold in the rapidly expanding AI sector.
Palantir’s Recent Rally
Palantir stock ended the first half of the year at $136.32. Despite the solid gains, the stock currently trades below its all-time high of over $144.25, reached just last week.
Most recently, Palantir’s shares gained further on news of a new partnership with Accenture’s (ACN) subsidiary, Accenture Federal Services. The collaboration aims to help U.S. government agencies adopt and scale AI tools, enhancing operational speed and modernization across federal operations. Before this, PLTR stock gained support after the company announced it is partnering with a Kentucky-based nuclear firm to co-develop and deploy the Nuclear Operating System (NOS). Notably, it is the first AI-driven, real-time software platform designed specifically for nuclear construction.
Is PLTR a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Hold consensus rating on PLTR stock, based on three Buys, 10 Holds, and four Sells assigned in the last three months. The average Palantir share price target is $104.27, which implies a potential downside of 23.5% from current levels.
