Shares of Palantir Technologies (NASDAQ: PLTR) climbed 14% over the past week, driven by a high-profile AI collaboration and a fresh bullish call from Wall Street.
Palantir announced a partnership with Nvidia (NASDAQ: NVDA) aimed at making open-source AI models more accessible to U.S. government agencies across federal operations.
The collaboration combines Palantir’s sovereign AI operating system with Nvidia’s Nemotron open models and accelerated computing infrastructure to deliver enhanced capabilities to government clients.
Government agencies stand to benefit from improvements in cost efficiency, safety, and customization, all while maintaining strict data security standards that federal operations require.
The deal arrives at a strong moment for Palantir’s government division, which has already been posting exceptional growth ahead of this latest development.
Revenue in the government segment soared 84% year over year to $687 million in the first quarter, underscoring the division’s rapid expansion and rising demand for AI-driven solutions.
D.A. Davidson analyst Gil Luria issued a separate bullish note on Palantir, arguing that the company’s platform holds a structural advantage over standalone AI model providers.
Luria contends that it makes more sense for companies to build on Palantir’s platform, which offers access to a wide range of AI models from nearly all major providers, rather than directly on the models developed by the likes of OpenAI and Anthropic.
Following that assessment, Luria upgraded Palantir’s stock from neutral to buy on Thursday and placed a $175 price target on its shares.
The combination of a major government-focused AI partnership and a prominent analyst upgrade gave investors renewed confidence in Palantir’s near-term and long-term growth trajectory.
With government AI spending showing no signs of slowing and Palantir positioned as a central infrastructure layer for AI deployment, the company appears well-placed to capitalize on continued public sector demand.
The Nvidia collaboration in particular signals a broader industry shift toward sovereign AI solutions, where data privacy and national security considerations are driving agencies away from commercial cloud-first approaches.
