Palantir Holds Anti-Fragile Edge Amid a Geopolitical Firestorm

As 2025 emerges as a year marked by heightened global conflict and uncertainty, Palantir Technologies Inc. PLTR is demonstrating how its platforms are increasingly relevant in volatile environments. From the Russia-Ukraine war and the Israel-Iran escalation to rising tensions in the Taiwan Strait, governments are rapidly investing in technologies that support secure, real-time decision-making under pressure.

Palantir holds an antifragile edge because rising geopolitical instability amplifies demand for its AI-driven defense platforms, thus deepening integration and long-term relevance. As global conflicts intensify, its systems become more critical, reinforcing the company’s strategic value and making it stronger in the face of adversity. Palantir’s strength lies in its ability to offer mission-critical infrastructure and not just tools. Its Maven Smart Systems (MSS) platform, integrating AI with real-time intelligence, has seen a rapid increase in adoption, including NATO’s recent selection of MSS as its Command and Control (C2) platform for all 32 member states. This underscores a broader institutional shift toward advanced, data-driven defense capabilities.

In times of crisis, decision-makers are often inundated with fragmented data and evolving threats. Palantir’s platforms, Gotham, Foundry and MetaConstellation, help unify and analyze this data securely, enabling informed and timely responses. Importantly, Palantir delivers sovereign and deployable AI systems, reinforcing the autonomy and operational integrity of its users.

While no one welcomes conflict, the unfortunate reality of today’s geopolitical landscape has led to renewed focus on resilient digital infrastructure. Palantir’s deeply integrated solutions, particularly its Ontology framework, position it as a critical enabler of secure coordination and defense modernization.

PLTR has surged a whopping 85% in 2025, with its stock reaching an all-time high near $145.

With the stock trading above 200x forward P/E and 74x forward P/S ratio, far above industry averages, even optimistic analysts will acknowledge that such multiples are difficult to justify without efficient execution. As ceasefire negotiations and diplomatic resolutions begin, the “war premium” currently embedded in PLTR’s share price could dissipate as swiftly as it had emerged.

PLTR stock currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its second-quarter 2025 earnings has been on the rise over the past 60 days.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stable Defense Alternatives to Palantir

As PLTR moves higher, Lockheed Martin LMT and RTX Corporation RTX offer more grounded defense exposure. Lockheed Martin, with its massive defense contracts, provides steady cash flow and less volatility than PLTR. LMT continues to benefit from global rearmament while trading at modest earnings multiples. Similarly, RTX shines through missile systems. RTX’s defense backlog, like LMT's, underscores its stability.

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This article originally published on Zacks Investment Research (zacks.com).

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