Palantir climbs to $177 as AI momentum and defense deals fuel optimism

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Palantir climbs to $177

Highlights

- Palantir closed at $177.21, up 1.01%, holding above the 20-day EMA near $177.66.

- Q2 revenue reached $1.004 billion, with U.S. commercial sales up 93% year over year.

- Bank of America raised its price target to $215, citing accelerating AI adoption.

With Bank of America recently lifting its price target to a Street-high of $215, investor confidence remains elevated even as valuation concerns linger. On the daily chart, Palantir continues to trade within its long-term ascending channel, showing resilience despite recent consolidation.

PLTR stock price dynamics (Source: TradingView)

The 20-day exponential moving average (EMA) at $177.66 has provided short-term support, while the 50-day EMA at $169.66 serves as a secondary buffer. A sustained defense of this range could pave the way for a retest of $190 — the August high — followed by resistance near $200, where the upper boundary of the channel lies.

Momentum indicators suggest a neutral-to-bullish stance, with the relative strength index at 51.36, indicating room for a further upside push if buyers maintain control. On the downside, a breakdown below $169 could open the door to a deeper pullback toward $155, which marks the next major support zone.

AI expansion drives growth story

Palantir’s fundamentals remain robust, underpinned by accelerating demand for its AI-driven platforms across both commercial and government sectors. The company reported its first billion-dollar quarter in Q2, with revenue rising 48% year over year to $1.004 billion and its contract backlog swelling 65% to $7.1 billion. U.S. commercial sales were the standout, surging 93%, while government contracts — long a core pillar of Palantir’s business — continued to expand rapidly.

Notably, the company’s $1.8 billion partnership with the U.K. government and ongoing integration of its Maven Smart System with the U.S. Army highlight Palantir’s growing role in defense-grade AI systems. These developments reinforce the company’s transition from niche analytics provider to a central player in global defense and enterprise AI infrastructure.

While growth remains exceptional, valuation has become a point of contention. Trading at 409 times forward earnings, Palantir’s premium pricing has divided analysts. Most maintain a Hold rating, citing the need for earnings expansion to justify the stock’s surge. Even so, bullish voices like Bank of America’s Mariana Perez Mora forecast 30% annual revenue growth through 2030, with U.S. government contracts projected to surpass $8 billion by the decade’s end.

Outlook

Investors will turn their attention to Palantir’s upcoming Q3 earnings report on November 3, where the focus will be on sustaining commercial momentum and securing new government contracts. From a technical standpoint, maintaining support between $170 and $177 would likely strengthen the case for a continued move higher toward $190 and $200.

Previously, we discussed how Palantir’s trajectory has been defined by expanding institutional confidence and its strategic pivot into AI infrastructure. That narrative continues to hold true as the company cements its position at the intersection of enterprise analytics and defense innovation. While volatility may persist due to valuation pressures, Palantir’s execution and deal momentum keep it among the most closely watched AI stocks heading into year-end.

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