Palantir Stock Rallies as DA Davidson Upgrades on Attractive Valuation

Key Stats for Palantir Stock

• Price change for Palantir stock in last 5 Days: 19%
• $PLTR Share Price as of Jul. 2: $130
• 52-Week High: $208
• $PLTR Stock Price Target: $183

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What Happened?

Palantir (PLTR) stock is up almost 20% in the past five days, powered by a rare convergence of company-specific catalysts hitting all at once.

DA Davidson upgraded Palantir stock from Neutral to Buy, raising its price target to $175 from $165. The firm argued that Palantir has grown into its valuation as profits have soared and the earnings multiple has compressed. That upgrade is doing a lot of the work today, but it’s not alone.

Palantir also announced a strategic partnership with Nvidia to deploy Nvidia’s Nemotron open-source AI models within Palantir’s platforms for U.S. government agencies and critical infrastructure operators.

That deal puts Palantir at the center of how sensitive government environments adopt advanced AI.

The U.S. Army separately selected Palantir Foundry as the cloud data layer for its Next Generation Command and Control program, described as the Army’s highest-priority modernization effort.

That’s the kind of win that signals durable, multi-year defense revenue.

On top of all that, President Trump’s 2025 financial disclosure revealed he holds at least $1 million in Palantir shares and recently added to the position.

CEO Alex Karp also appeared on CNBC, publicly criticizing the token-based pricing model used by frontier AI labs, arguing enterprises are effectively paying a “wealth tax” on tokens. That commentary reinforced Palantir’s differentiated platform model and drew fresh attention to the stock.

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What the Market Is Telling Us About Palantir Stock

Palantir stock’s move today stands out because it’s happening while the broader market is slightly negative. The S&P 500 is down 0.2% and the Nasdaq is off 0.7%, suggesting this rally is almost entirely company-specific.

The broader sector backdrop is also helpful. A rotation has been underway from AI semiconductor names back into AI software stocks, lifting peers across the space. Guggenheim upgraded Salesforce and ServiceNow to Buy, arguing that fears of AI disruption had driven software valuations too low.

The underlying business continues to justify the enthusiasm.

• In Q1 2026, Palantir reported revenue growth of 85% year-over-year to $1.633 billion.
• U.S. revenue crossed 100% growth for the first time as a public company.
• The company raised its full-year 2026 revenue guidance to between $7.650 billion and $7.662 billion, representing 71% growth.
• Free cash flow hit $925 million in the quarter, a 57% margin.

Palantir stock is still well below its 52-week high of $207.52, which DA Davidson’s upgrade suggests may leave room for further upside if execution continues.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!