Palantir, a US-based software company, has seen its stock price rise by 45% this year, bucking the trend in the technology sector. The company’s government business and focus on efficiency are key factors contributing to its outperformance.
The company’s artificial intelligence-enabled tools have gained recognition for its defense and software contracts with key US government agencies, including the military. In the fourth quarter, its government revenues jumped 45% year-over-year to $343 million.
Unlike other tech companies, Palantir has benefited from the Trump administration’s efforts to increase efficiency in government spending. The company is seen as a major contractor and partner for defense projects. CEO Alex Karp has been vocal about his support for American innovation and the need for an “all-country effort” to compete against emerging adversaries.
However, Palantir’s stock has also been volatile, with shares experiencing significant swings due to its high price-to-earnings multiple and increased attention from retail traders. Despite this, the company remains a top performer among companies valued at $5 billion or more.
Source: https://www.cnbc.com/2025/04/28/palantir-tech-stocks.html