Wajeeh Khan
2 min read
In This Article:
Palantir (PLTR) shares remained in focus on Friday as the big data analytics firm said it had partnered with Columbia-headquartered “The Nuclear Company.”
Palantir has teamed up with TNC to develop an AI solution dubbed the Nuclear Operating System (NOS) – designed to streamline and accelerate the construction of U.S. nuclear reactors.
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At the time of writing, Palantir stock is up more than 100% versus its year-to-date low.
The TNC partnership is a strategic win for Palantir as it marks its first foray into nuclear infrastructure, expanding its artificial intelligence footprint beyond defense and commercial analytics.
More importantly, the $100 million agreement aligns PLTR with U.S. energy modernization goals, especially as AI data centers drive a massive increase in electricity demand.
“The Nuclear Company” deal offers another reason to own PLTR shares since it reinforces the Palantir’s relevance in national priorities and signals long-term growth potential in a sector poised for rapid expansion.
Simply put, teaming up with TNC is a move that strengthens both narrative and fundamentals for Palantir.
Despite Palantir’s commitment to diversifying its revenue streams, Louie DiPalma – a senior William Blair analyst – recommends treading with caution on the AI stock.
In his latest research note, DiPalma reiterated his “Market Perform” rating on PLTR, citing a $200 million Department of Defense contract that it lost to OpenAI last week.
According to him, the development signals rising competition that could stand in the way of PLTR stock replicating its recent outperformance moving forward.
Finally, the William Blair analyst, much like many other experts, cited egregious overvaluation for taking a cautious tone on Palantir shares. Note that the big data analytics firm is trading at a forward price-to-earnings multiple of about 390x at the time of writing.
DiPalma’s peers at several other Wall Street firms agree with his cautious stance on Palantir stock.
The consensus rating on PLTR shares also currently sits at “Hold” only with the mean target of about $105 indicating potential downside of some 20% from current levels.
