Palantir (NYSE:PLTR) has been on fire and remains in the headlines as investors continue flocking to this name. PLTR stock is working on its ninth weekly rally in the last 10 weeks, climbing almost 130% in that span.
When a stock like Palantir doubles in such a short amount of time, investors take notice. From the low in late December, shares have nearly tripled.
Lately, PLTR stock has become a focus as an AI stock, giving it an even extra boost. Stocks like Nvidia (NASDAQ:NVDA) and C3.ai (NYSE:AI) have seen explosive rallies so far in 2023 on investor optimism surrounding artificial intelligence.
The stock price continues to butt up against the $17 level as it looks for a potential breakout. Investors were hoping it would come on Wednesday — and not just because of the bullish reaction to the monthly inflation report.
Instead, it’s as Palantir and AirMatrix announced “a strategic partnership to accelerate and scale its drone operations.” Airmatrix is a “trailblazer in airspace infrastructure technology.”
Airmatrix CEO Bashir Khan said, “We live in a world where drones are inevitable, our success as an organization is bound to a world where they are used for good, as much as artificial intelligence and humans can possibly help it, together.”
What Else Does PLTR Stock Have Going for It?
Aside from Airmatrix, Palantir also announced its expanded partnership with Carahsoft. As reported by InvestorPlace’s Dana Blankenhorn, “Specifically, the expansion is for Palantir’s artificial intelligence (AI) database software as the company seeks government business outside of the military.”
Jim Cramer also recently made positive remarks about the stock.
With the recent rally, PLTR stock currently commands a $35 billion valuation. Analysts currently expect about 16% revenue growth this year and an acceleration up to 19% growth in 2024. It helps that Palantir continues to improve its bottom-line results.
Likely the biggest question when it comes down to PLTR stock and its short-term performance? Momentum.
Simply put, the short-term direction of Palantir stock will likely depend on the momentum of both tech stocks in general and AI stocks more specifically. If these groups turn lower this summer, it will be a tough battle for shares to continue higher.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
