Palantir Technologies (PLTR) has agreed to invest up to £1.5 billion ($2 billion) in the UK, under a strategic partnership focused on boosting military artificial intelligence (AI) and innovation. The news of the defense deal drove a 3.4% rise in PLTR stock, as of writing. A potential deal between the data analytics company and Britain had been earlier reported by The Times and other media outlets. Major American companies have pledged £150 billion worth of investments during U.S. President Donald Trump’s state visit to the UK.
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PLTR stock has rallied by an impressive 125% year-to-date, driven by the company’s robust financials and AI tailwinds.
Palantir Collaborates with UK Defense
Palantir Technologies signed a partnership deal with UK Defense Secretary John Healey on Thursday. Under the deal, Palantir will invest up to £1.5 billion to help the UK military develop the latest digital tools and capitalize on AI technology to boost the effectiveness of armed forces. The company’s investment is expected to create 350 high-skilled jobs in the UK.
Palantir plans to establish London as its European headquarters for the company’s defense business, making Britain the hub for defense technology innovation in the region. The company has also agreed to help British defense start-ups and small and medium enterprises (SMEs) to expand into U.S. markets, including an “offering on a pro bono basis.”
Palantir CEO Alex Karp stated that this partnership will see up to £750 million invested in “the most advanced AI-enabled defense technology, honed on the battlefield in Ukraine and used extensively by the U.S. and NATO.”
Is PLTR a Good Stock to Buy?
While several Wall Street analysts acknowledge Palantir’s solid execution and robust AI-led growth, they are cautious due to the stock’s steep valuation. The Hold consensus rating on Palantir Technologies stock is based on 13 Holds, four Buys, and two Sell recommendations. The average PLTR stock price target of $154.47 indicates 11.6% possible downside from current levels.
