TLDR Palantir stock rose nearly 20% in five days after DA Davidson upgraded the shares to Buy. DA Davidson raised its Palantir price target to $175 from $165, citing stronger profits. Palanti
Palantir stock rallied as DA Davidson shifted its view and upgraded the shares to Buy. The firm raised its target to $175 from $165, citing stronger profits and valuation support. The move came as new government and AI catalysts supported a company-specific advance.
Palantir Technologies Inc., PLTR
DA Davidson said Palantir has grown into its valuation as earnings improved. The firm noted that profit growth has helped reduce pressure on the stock’s multiple. Therefore, Palantir stock gained fresh support from a clearer valuation argument.
The upgrade arrived after Palantir stock rose nearly 20% across five trading days. The advance came while the S&P 500 slipped 0.2% and the Nasdaq fell 0.7%. As a result, the rally showed stronger company momentum than broader market strength.
Palantir also announced a strategic partnership with Nvidia for U.S. government users. The companies will deploy Nvidia’s Nemotron open-source AI models inside Palantir platforms. That agreement places Palantir stock near another major government AI growth theme.
The partnership targets federal agencies and critical infrastructure operators with sensitive data needs. Palantir said the model deployment will support secure AI use in controlled environments. Meanwhile, Palantir stock benefited from renewed attention on its enterprise platform model.
CEO Alex Karp also criticized token-based AI pricing during a CNBC appearance. He said enterprise buyers face a “wealth tax” when frontier labs charge by tokens. His comments highlighted Palantir’s different pricing approach and reinforced the software platform story.
The U.S. Army selected Palantir Foundry for its Next Generation Command and Control program. The Army describes the project as its highest-priority modernization effort. Therefore, Palantir stock gained support from a potential multi-year defense revenue path.
Palantir reported Q1 2026 revenue of $1.633 billion, up 85% year-over-year. U.S. revenue passed 100% growth for the first time since the company went public. The company also raised 2026 revenue guidance to between $7.650 billion and $7.662 billion.
Free cash flow reached $925 million in the quarter, equal to a 57% margin. Palantir stock remains below its 52-week high of $207.52 despite the recent rally. The DA Davidson upgrade suggests Palantir stock could keep drawing demand if execution remains strong.
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