Palantir Shares Surge After Analyst Upgrade and Nvidia Partnership

D. A. Davidson analyst Gil Luria upgraded Palantir Technologies to a buy rating on Thursday, raising his 12‑month price target from $165 to $175. He cited the company’s “most attractive” valuation and a new partnership with Nvidia that will enable “sovereign AI” – the ability to run Nvidia’s AI models inside secure, air‑gapped environments for government and critical‑infrastructure customers.

Following the upgrade, Palantir’s stock rose between 2.8% and 5% in trading, reaching as high as $132.88 before settling near $130. The rally added roughly $21.7 billion to the company’s market value in a single session. In the first quarter, Palantir reported revenue of $1.63 billion, an 85% year‑over‑year increase, and an adjusted operating margin of 60%, while raising full‑year 2026 revenue guidance to about $7.65 billion. Luria added, “We believe Palantir’s valuation is the most attractive it has been in a while,” and highlighted the firm’s ability to swap underlying AI models without disrupting client solutions.

The Nvidia collaboration, together with recent U.S. government contracts, underscores Palantir’s push into secure AI solutions for public‑sector clients, reinforcing its growth narrative and supporting the recent stock gains.