Palantir Technologies (NYSE:PLTR) stock is rising today on news of an important new partnership. The data analytics innovator has joined forces with tech sector leader Oracle (NYSE:ORCL) to expand its mission-critical artificial intelligence (AI) solution offerings.
News of this agreement has sent both ORCL and PLTR stock into the green as the market prepares for another stage of the AI boom. According to a statement released this morning:
“Oracle’s distributed cloud and AI infrastructure, combined with Palantir’s leading AI and decision acceleration platforms, will help organizations maximize the value of their data—which will contribute to increasing efficiency, addressing sovereignty requirements, and help them outpace adversaries.”
This development makes it clear that both companies are focused on expanding their share of the rapidly expanding AI market. Both stocks are key players in this field but now investors have even more reason to be excited.
What’s Happening With PLTR Stock
Even with all the hype surrounding the AI boom, today’s gains for both companies have been modest. As of this writing, PLTR stock is up 2% for the day. At the same time, ORCL is just barely in the green. Despite dipping over the past month as Wall Street sentiment has trended downward, Palantir has still seen impressive growth over the past two quarters, rising almost 50%.
Despite the recent volatility, teaming up with an industry leader like Oracle should give PLTR stock exactly the boost it needs. The partnership should enable both companies to continue delivering AI products and solutions to both private and public sector clients, thereby scaling their dynamic reach across the sector. Palantir’s executive vice president, Josh Harris, provided further context on the partnership and its implications, stating:
“Palantir and Oracle are both dedicated to defending western interests and institutions around the world. Oracle Cloud Infrastructure’s unique ability to help customers meet their regulatory, performance, and security needs will increase our impact and help our global clients gain the full benefits of cloud and AI.”
This comes at a time when the need for cybersecurity services is increasing quickly. Recent data indicates that spending on “security and risk management” across the globe will outpace overall IT spending in 2024. And AI is helping revolutionize the field, ushering in what Morgan Stanley describes as a new era for both. This means ample growth opportunities for a company like Palantir and, by extension, for its partners.
The Bottom Line
Investors should be careful to see the big picture when it comes to PLTR stock. Even if Wall Street isn’t overly optimistic about the company’s future, its impressive growth on the back of the AI boom cannot be ignored.
As InvestorPlace contributor Will Ashworth notes, Palantir should be considered “AI royalty,” as it is taking major steps to help transform multiple industries through this revolutionary new technology. This new partnership should remind investors that through it all, the company remains hyper-focused on growth and innovation.
On the date of publication, Samuel O’Brient 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.
