Palantir Hits a New All-Time High. The AI Trade Is On Fire. -- Barrons.com

Dow Jones2025-05-15

By Adam Levine

Palantir stock touched its second all-time high of the week on Wednesday, reaching $133.49 in intraday trading, before pulling back slightly.

Palantir is a stock given to sharp moves. It has been a particularly wild ride for Palantir shareholders since the company reported first-quarter earnings on May 5. While it was a strong quarter that beat analysts expectations, and included raised 2025 guidance, the stock fell 12% the next day to $108.86. It closed out last week at $117.30, and then rose to $128.10 on Tuesday, after touching an intraday high of $130.60.

The stock's success has also been tied to broader market sentiment around artificial intelligence. The so-called AI trade has come storming back in recent weeks. The Trump administration's pullback on tariffs has restored investors' tolerance, and enthusiasm, for riskier growth stocks.

Palantir CEO Alex Karp also joined a group of tech leaders who accompanied President Donald Trump to Saudi Arabia this week, where new AI deals were announced by Nvidia, Advanced Micro Devices, and Amazon. Karp was likely there to talk about defense contracts.

Palantir stock has been subject to "on-again, off-again applause," on Wall Street, Barron's wrote in a recent feature on the company. "The business has become the subject of great debate, ranging from Karp's views on Silicon Valley and politics to the scale of opportunity that lies ahead for the company's unique approach to software," Barron's wrote.

Wall Street holds a wide range of views on the stock with analyst price targets currently ranging from $40 to $140.

Since going public in September 2020, Palantir stock is up 1,262% for a 76% annualized return. The S&P 500 index has returned an annualized 11% over the same period.

So far this year, Palantir stock is up 71%, versus flat performance for the large-cap index.

Write to Adam Levine at adam.levine@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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May 14, 2025 12:40 ET (16:40 GMT)

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