Shares of Palantir Technologies (PLTR 3.91%) traded nearly 3% higher as of 10:55 a.m. ET today. The U.S. Department of Defense (DoD) yesterday announced it has awarded Palantir a contract modification to increase potential spending on work Palantir is currently doing with the Army.
The DoD said it awarded Palantir a $795 million modification for its Maven Smart System software licenses, with an expected completion data of May 28, 2029. According to SpaceNews, the contract for Palantir's Maven Smart System had a ceiling of $480 million one year ago. With the $795 million increase, the Pentagon may spend nearly $1.28 billion on artificial intelligence (AI) for the Army by 2029.
Image source: Getty Images.
Palantir has been working with the DoD since 2017 to help the department improve the sharing of information between its various departments through AI-enabled awareness, global integration, logistics, and targeted workflows, among other solutions. The company can gather massive amounts of data from different sources, including satellites, drones, and various sensors, and then analyze the data and make suggestions in real time for how to approach various situations.
Palantir has impressed investors with its ability to keep securing government contracts and funding, despite much discussion about government spending cuts this year. However, it looks like the Trump administration will look to keep the defense base budget flat in fiscal year 2026.
Palantir is now up 66% this year and has absolutely crushed the market. The stock seems to have no limit and now trades at 214 times forward earnings. Given the company's traction and how well the stock has performed in the face of many challenges this year, Palantir's technology appears to be very impressive and a leader in AI analytics and decision-making.
That said, I just don't buy stocks at these kinds of valuations.
免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。