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Palantir Jumps as Defense Focus and Pentagon AI Shift Drive Fresh Re‑Rating

Reports linking its software to Iran strikes alongside a mandated Anthropic phase-out are channeling new federal demand.

Overview

  • Palantir shares rose about 9% over five trading days as investors refocused on the company’s government and defense exposure.
  • The Defense Department ordered a six‑month phase‑out of Anthropic’s AI models, with Rosenblatt calling it an opening for Palantir‑backed LLMs and Piper Sandler cautioning about near‑term operational friction.
  • Reports, not officially confirmed, say U.S. targeting of roughly 1,000 sites in Iran was coordinated using Palantir software.
  • The latest quarter showed 70% year‑over‑year revenue growth to $1.41 billion and a 137% surge in U.S. commercial sales, alongside a $10 billion Army framework and a $448 million Navy contract.
  • Analyst views diverge, with Rosenblatt lifting its target to $200 and Piper Sandler reiterating $230, while skeptics like Michael Burry see value near $46 and some bulls at Citi and Bank of America project $255–$260.