With a gain of more than 2% to $89.56 in afternoon trading on Friday, Palantir Technologies Inc. (NYSE: PLTR) went on to record its second straight week of gains. After a steep decline in late February, Palantir has recovered to rise 17% year-to-date in 2025, despite recent turbulence.
The technical levels and performance of stocks
The shares of PLTR have been steadily rising after dropping by almost 30% from their peak of $125.41, which was reached on February 19.
- The 50-day moving average, a crucial technical resistance level that, if broken, may signal a possible breakout, is currently close below the stock’s current price.
- Palantir’s Accumulation/Distribution Rating of D indicates that institutional ownership has declined over the last 13 weeks, indicating mild selling pressure.
- Nevertheless, Palantir continues to beat 99% of all companies in terms of price performance, as seen by its exceptional Relative Strength Rating (RS) of 99, the greatest possible score.
- With a Composite Rating of 98 out of 99, it has both technical strength and solid growth fundamentals.
Defense Contract Issues Consider Sentiment
Palantir’s stock fell precipitously in late February despite its recent advances due to worries about possible Department of Defense (DoD) budget cuts.
- One of Palantir’s biggest government customers is the U.S. Army, which puts the business at risk of losing federal contracts.
- Defense-related equities, such as Accenture (ACN) and Booz Allen Hamilton (BAH), saw a sell-off after Defense Secretary Pete Hegseth said this week that $580 million in Pentagon contracts will be cancelled.
- Defense-related equities, such as Accenture (ACN) and Booz Allen Hamilton (BAH), saw a sell-off after Defense Secretary Pete Hegseth said this week that $580 million in Pentagon contracts will be cancelled.
- Palantir’s exposure to possible future contract cutbacks continues to raise concerns among investors.
AI-Powered Hope Increases Stocks
- Palantir’s recent customer AI conference, which highlighted the company’s growing artificial intelligence capabilities, rekindled optimism.
- The company’s AI-powered platforms, such Foundry and Gotham, which provide sophisticated data analytics and decision-making capabilities, have been gaining popularity in both the public and private sectors.
- Alongside Nvidia (NVDA) and Arista Networks (ANET), Palantir is positioned as a major player in the AI race, despite the fact that both rivals have had difficulty in 2025.
- Nvidia stock is down roughly 13% year-to-date, despite hosting its GTC conference, underscoring broader.
Outlook: Important Levels and Trending Catalysts
Palantir is now trading close to its 50-day moving average; a breakout above this level would indicate additional upside potential.
- However, short-term gains may be limited by institutional selling and DoD budget uncertainty.
- Important levels to observe:
- Resistance: 50-day moving average, or $92.50
- $85.00 for support
Takeaway: Palantir Remains Firm in the AI Industry Despite the Risks of Defense
Despite worries about government contracts, Palantir stands out in the artificial intelligence space thanks to its AI-driven growth and solid technical ratings.
- Palantir may reap additional benefits if it sustains its commercial pace and successfully manages the risks associated with federal contracts, as AI use is speeding up across industries.
- Because it offers both growth potential and volatility, PLTR is still one of the best AI stocks for investors to keep an eye on.