Key Takeaways

• Palantir closed at a record high as optimism about easing tariffs has driven stocks higher.

• The rally comes on the heels of losses last week following quarterly results from Palantir that may not have lived up to investors' lofty expectations.

• The AI darling's stock is up more than 70% in 2025 and over 500% from a year ago. 

Palantir's stock gains Tuesday more than made up for losses early last week following the company's quarterly results.

Shares of Palantir (PLTR) closed Tuesday at an all-time high as optimism about easing tariffs has driven a broad market rally that has lifted artificial intelligence stocks.

The company's stock rose 8% to finish just above $128, though it was even higher intraday; the stock established both closing and intraday records. The latest surge comes after the U.S. and China agreed Monday to slash their tariffs on one another for 90 days.

Tuesday’s gains more than made up for losses early last week following quarterly results from that may not have lived up to investors’ lofty expectations. Despite beating Wall Street’s expectations and raising its full-year outlook, Palantir's shares dropped 12% the following day. 

Palantir stock is up more than 70% in 2025 and over 500% from a year ago. 

On Monday, Bank of America analysts called the firm a “market definer” for companies looking to leverage artificial intelligence. The bank said Palantir’s recent deal with the North Atlantic Treaty Organization, which came despite pressure on the body to buy from a European firm, “hints at the superior capabilities [the company] can provide customers.”

Their price target, $150, is well above the Visible Alpha consensus near $95.