Palantir Technologies stock rose to a record high on Thursday. It's a reflection of just how bullish investors are feeling right now.

The company said Thursday that it had agreed a strategic partnership with The Nuclear Company, which deploys nuclear power, to develop an AI-driven software system built for nuclear reactors.

The deal calls for the firms to "co-develop and deploy NOS, the first AI-driven, real-time software system built exclusively for nuclear construction." NOS will be used to help The Nuclear Company build plants faster, safer, and at lower costs, Palantir said.

Mike Gallagher, Palantir's head of defense, said the agreement marked "the first time Palantir's software will be used to help power the next generation of nuclear energy infrastructure."

Palantir has surged 90.7% already this year, through Thursday's close, powered higher by the artificial-intelligence investing frenzy that has been lifting the broader market since late 2022. At an eye-watering 246-times projected 2025 earnings, the stock looks significantly overvalued - but that might not catch up with it for a while.

The Nasdaq 100 just hit an all-time high of its own, and the S&P 500 is on the brink of doing the same. Investors have shrugged off the geopolitical crisis in the Middle East and are starting to bet on Federal Reserve interest-rate cuts, which tend to be good news for growth stocks like Palantir.

All of that suggests the stellar run isn't over just yet.

From government contractor to a big commercial player

Palantir's technology can pull in large datasets from different sources and then analyze that data to provide actionable insights. The company's Gotham platform helps users find hidden patterns buried within large, complex datasets, ranging from intelligence sources to reports from confidential informants. Gotham also helps users plan and carry out real-world responses to threats discovered on the platform. According to Palantir, Gotham is used across the government and has been used by the Department of Defense in counter-terrorism operations.

Palantir also has other platforms purposed for broader business use cases. The company's Foundry platform creates a central operating system for all data that a company may need. Palantir in its annual report said, "The speed with which users can experiment and test new ideas is what makes the software stick." The platform is built to solve one of the core issues behind all data projects, which is allowing people to track how an original data project was built and where that data came from.

Plenty of businesses now use Palantir's Foundry platform. United Airlines uses it to monitor its in-flight Wi-Fi to quickly identify and correct connectivity issues. The company also partnered with Palantir to build a database of millions of technician summaries since 2016, which it used to develop predictive capabilities for equipment breakdowns it can now more quickly discover and correct. All of this led to fewer delayed flights and cancellations.

Palantir now has a nice stream of commercial and government revenue coming in. In the first quarter, government-related revenue made up 55% of total revenue, while commercial revenue made up 45%. Commercial revenue grew 33% year over year, while government revenue increased 45%.