Palantir Technologies (PLTR, Financial) has soared over 300% in 2024 due to its growing involvement in artificial intelligence as well as defense innovation. The government contracts power contributor makes up nearly 60% of the company's revenue and puts it in a central role in the U.S. military modernization drive.
The defense writer Chief Technology Officer Shyam Sankar highlights the need for U.S. military software to keep pace with the times. Sankar, who also serves as president of the Media Management Centre, called it a 'painful' but necessary process to remain on top.
It's clear, thanks to Palantir CEO Alex Karp, how important AI is in changing industries and economies. "We are in the software century, and we plan to take the whole market," Karp said in a Nov. 4 letter to shareholders. Wall Street analysts show a bullish view of the stock and see Palantir's advancements in AI as important to its trajectory for growth.
Palantir may have had a strong first step, but it has rising competition in the defense tech market, which could call into question whether it will be a long-term top dog. The fact that the company remains focused on pushing AI into government and commercial sectors, however, is helping to assuage investor concerns.
That surge in Palantir stock represents optimism around how the company leads on AI-powered defense tech and how it plans to grow.
