Palantir Secures $795M US Army Modification Contract

Palantir Technologies Inc. (NASDAQ:PLTR) has affirmed its status as one of the biggest beneficiaries of artificial intelligence integration in defense infrastructure. On May 21, the company obtained a $795 million contract from the US Army to modify the Maven Smart System software licenses.

The $795 million contract underscores Palantir’s deepening ties with government defense initiatives on artificial intelligence initiatives. The multi-million contracts also come on Palantir securing a $178 million contract to build artificial intelligence-enabled systems for the US army in the first quarter.

Palantir has rallied 60% year-to-date, outperforming the overall market amid the growing business pipeline. Over the past year, the stock has more than quintupled in value. The significant stock uptick underscores strong investor confidence about Palantir’s growth prospects in the burgeoning AI and data center sectors.

Additionally, the uptick has come on investors reacting to the company benefiting from booming government business. In the first quarter, Palantir recorded 139 deals of at least $1 million, 51 deals of at least $ 5 million, and 31 deals of at least $10 million. In addition, it delivered impressive Q1 2025 results, with sales jumping 39% year over year to $884 million as US revenue grew 55% to $628 million.

While we acknowledge the potential of Palantir Technologies Inc. (NASDAQ:PLTR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about the cheapest AI stock.

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