Palantir Technologies (PLTR) hit a record $133.55 on June 2, 2025, fueled by a $795M U.S. Army contract and Trump administration partnerships. Dive into the AI giant’s explosive growth, new deals, and privacy debates shaking Wall Street.
Palantir Technologies is dominating headlines as its stock soared to an all-time high of $133.55 on June 2, 2025, marking a staggering 512% rally over the past year. A massive $795 million U.S. Army contract and deepening ties with the Trump administration are propelling the Denver-based AI and data analytics firm to new heights. Yet, privacy concerns and insider sales are stirring controversy. Here’s the latest on Palantir’s breakout year.
Massive Army Contract Fuels Growth
On May 27, Palantir secured a $795 million contract modification for its Maven Smart System, boosting the total award to $1.3 billion through 2029. The deal expands AI-driven data analysis for military targeting, with Palantir’s Gotham platform enabling real-time threat detection across U.S. Army, Air Force, Navy, and Space Force operations. This follows a $178 million Army contract in March for the Tactical Intelligence Targeting Access Node (TITAN), solidifying Palantir’s defense tech dominance. Government revenue, up 45% year-over-year to $373 million in Q1 2025, accounts for 42% of the company’s $884 million total sales.
Trump Administration Boost and Privacy Firestorm
Palantir’s stock has surged 140% since November 2024, driven by its alignment with the Trump administration’s priorities. A March 2025 executive order on federal data sharing has integrated Palantir’s Foundry platform into agencies like the Department of Homeland Security and Health and Human Services, with over $113 million in new contracts since January. Talks with the Social Security Administration and IRS signal further expansion. Posts on X highlight Palantir’s role in a “master surveillance list,” raising privacy fears. Thirteen former employees penned a letter urging Palantir to halt its Trump ties, citing risks of data misuse, though the company insists its tech includes robust safeguards.
AI-Powered Commercial Wins
Palantir’s commercial sector is thriving, with U.S. revenue up 71% in Q1 2025. A May 28 partnership with Fannie Mae uses Palantir’s AI to detect mortgage fraud in seconds, a game-changer for the housing market. Another deal with Ecuador’s Customs Agency to curb illegal trade shows global reach. The company’s Artificial Intelligence Platform (AIP) is driving demand, with CEO Alex Karp calling it “extremely valuable” in a recent SAP partnership. Palantir projects 2025 revenue of $3.89-$3.902 billion, a 36% jump.
Insider Sales and Valuation Concerns
Despite the rally, insider moves are raising eyebrows. CEO Alex Karp sold $50.4 million in shares, with CTO Shyam Sankar and co-founder Stephen Cohen offloading $21.2 million and $43.5 million, respectively, in late May. These automated sales, tied to tax obligations, haven’t slowed PLTR’s 5% gain on June 3. However, its 214x forward P/E ratio—compared to Nvidia’s 27.96—sparks debate. Jefferies’ Brent Thill called the valuation “irrational,” though Wedbush’s $140 price target sees room for growth. X posts note Palantir’s resilience despite market volatility and tariff fears.
Why Palantir Is the Talk of Wall Street
With a $311 billion market cap, Palantir is outpacing tech giants like Nvidia in 2025, leading the Nasdaq 100 with a 75% year-to-date gain. Its AI tools, used by the Israel Defense Forces and U.S. military, position it as a defense and data analytics leader. Yet, controversies over its ICE contracts and potential data overreach loom large. X users call PLTR “unstoppable,” with one post dubbing it “the AI stock of the decade.” Analysts predict a possible gamma squeeze from call option activity, but caution persists due to its lofty valuation.
What’s Next for Palantir
As Palantir eyes Q3 2025 earnings in August, investors are watching for updates on federal contracts and commercial growth. The company’s ability to navigate privacy concerns while capitalizing on AI demand will be critical.