This strong performance in the government sector highlights the increasing reliance of public agencies on AI-powered analytics for decision-making and operational efficiency.
Morningstar analysts expressed optimism to Reuters about Palantir’s future growth prospects, particularly in the government sector, saying: “We see a long runway of growth in the government sector, owing to the massive demand for AI-first solutions across governmental functions such as the military and healthcare.”
Market performance and valuation
Palantir’s strong performance has not gone unnoticed by the broader market.
The company’s stock has outperformed the S&P 500 index this year and was added to the benchmark index in late September, a move that typically increases a company’s visibility and attractiveness to investors.
If the premarket gains hold, Palantir is expected to add US$12bn to its market value.
This significant increase reflects the growing investor confidence in the company’s AI-driven business model and its potential for future growth.
Reflecting the breadth of AI growth through Palantir, the company has partnered with L3Harris, the American technology company and defence contractor, in aim to enhance defence technology by combining AI capabilities with advanced sensors.
This signifies a growing trend of AI integration in defence, potentially reshaping the tech industry’s approach to military applications.
Swiss
