Palantir (NYSE: $PLTR) Surges 20%+ On $178M Defense Contract & New Customers

Palantir Technologies Inc.(NYSE: $PLTR) is an American tech company based in Denver, Colorado, that provides software to enable human-driven real-world data analysis. Founded in 2003, its solutions include insurance analytics, financial compliance, law enforcement, automotive, vulnerability management, and threat intelligence. 

On Wednesday, March 6, 2024, Palantir stock soared by more than 4% after it announced the acquisition of a $178 million U.S. Army contract for project TITAN.

Palantir Chosen for TITAN Next-Gen Deep-Sensing Capability Prototype Maturation Phase

TITAN (Tactical Intelligence Targeting Access Node) is a battlefield system that equips soldiers with advanced data fusion and deep-sensing abilities through artificial intelligence and other tools.

The deal worth $178.4 million consists of developing 10 TITAN prototypes, which will include five advanced and five basic variants TITAN prototypes in 24 months. It will also involve the implementation of crucial technologies and the move towards field deployment.

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The Vice President of Palantir’s Defense Technology, Bryant Choung, said, “Overall, it’s a software-defined solution, so it’s designed to be modular, flexible, adaptable, configurable. But currently, as envisioned, there’s two different variants — the advanced variant that is at higher echelon, and a more tactical version, which is the basic variant.”

He added, “It’s a larger truck-based platform, incorporates a data center, more or less on the back, as well as a shelter that allows soldiers to be in there operating on multiple classified networks.

With TITAN, automation of target recognition and geolocation can be enhanced, decreasing the sensor-to-shoot (S2S) timelines. TITAN incorporates systems, technologies, and software from a diverse team of both conventional and unconventional partners, including Northrop Grumman, Anduril Industries, L3Harris Technologies, Pacific Defense, SNC, Strategic Technology Consulting, and World Wide Technology.

The President of Palantir USG, Akash Jain, said, “This award demonstrates the Army’s leadership in acquiring and fielding the emerging technologies needed to bolster U.S. defence in this era of software-defined warfare. Building on Palantir’s years of experience bringing AI-enabled capabilities to warfighters, Palantir is now proud to deliver the Army’s first AI-defined vehicle.”

Palantir to Disclose New Customers at Overbooked AIPCon

The company announced on Wednesday that more than 60 customers will display their work at AIP (Palantir Artificial Intelligence Platform) at AIPCon, where it will also present 20 new customers and partners. AIP was inaugurated by Palantir in mid-2023, and later, AIP Boot Camps were introduced. The conference will be live-streamed on Palantir’s Official YouTube channel.  

Stock Update: $PLTR

On Wednesday, March 6, $PLTR was trading at $24.91 with a gain of 4.62%, driven by the $178 U.S. Army contract. The gains continued on Thursday, and as of 11:18 aM EST, the stock was up 3.54% at $27.16 per share. 

 At the time of writing, the market cap is $59.954, with a volume of 63,406,832. The stock has surged 63.69% since the start of this year.

Palantir Technologies Inc. (PLTR)
Palantir (NYSE: $PLTR)

Should you buy $PLTR?

The recent news of the U.S. Army contract makes this stock a good long-term investment option. The global adoption of  AI technologies has picked up speed in recent months, and Palantir is one of the companies leveraging AI technologies in the defence sector. 

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