Palantir (NASDAQ:PLTR) looked ike it was trading sideways like Nvidia (NASDAQ:NVDA) did when hype started to plateau. However, momentum has built up more, and it had another breakout moment today. The stock hit fresh highs of $138.9.
Even analysts who’ve been bearish on its valuation have been forced to chase the price. Mizuho lifted its target to $116 while keeping an “Underperform” label, and Wedbush now sees $140 as the baseline. With a $1.3 billion Department of Defense expansion and a flood of new federal and commercial deals still rolling in, bulls argue that it might take only one more marquee contract to sling PLTR beyond $150.
Palantir’s growth engine remains its dominance in high-stakes government work, now paired with accelerating U.S. commercial demand. Q1 figures beat estimates again, and Palantir upped its guidance. Revenue grew 39% year-over-year to $884 million, and its net income doubled to $214 million.
The headline win was a $1.3 billion Department of Defense contract that expanded May’s initial $795 million award and made Palantir a core AI logistics partner for the Pentagon. Beyond defense, new deals range from hospital workflow optimization to a digital-transformation pact with Italy’s Fedrigoni paper group.
There is a price target from Bank of America right at $150. Palantir has outrun even the most bullish of estimates, so it is likely the current hype cycle could take it to $150, or even $170, depending on how long it lasts.
The current administration seems friendly with the company, and it is likely that Palantir will see many more contracts down the line. Wall Street will reward PLTR stock in an outsized manner for each contract as long as there is hype in the stock market. Still, it is unlikely PLTR stock will hold this premium for too long as the economic pendulum swings the other way.
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