Palantir Surges 7.85% on $22.62B Volume Ranks Second in Market Activity on AI Demand and Government Contracts

Palantir Technologies (PLTR) surged 7.85% on August 5, with a trading volume of $22.62 billion, marking a 68.99% increase from the previous day and ranking second in market activity. The rally followed the company’s second annual revenue forecast upgrade, driven by robust demand for its AI-powered tools across government and commercial sectors. U.S. government sales rose 53% year-on-year to $426 million, accounting for 42% of total Q2 revenue, while a potential $10 billion Army contract over the next decade further bolstered investor confidence.

Analysts highlighted Palantir’s rapid growth trajectory, with its stock surging over 600% in three years and outperforming major tech peers. However, valuation concerns emerged as the stock trades at over 200 times forward earnings, far exceeding industry benchmarks. Jefferies and Morningstar noted a “disconnect between valuation and achievable growth,” citing rising operational costs due to seasonal hiring and talent competition in the AI sector. At least 11 brokerages raised price targets post-earnings, reflecting optimism about the company’s scalability despite risks.

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