Palantir shares rise after D.A. Davidson upgrade to Buy and higher price target

Palantir Technologies shares jumped in Thursday trading after D.A. Davidson upgraded the data analytics and AI software company to Buy from Neutral and increased its price target, according to market coverage. The move added to a pattern investors have shown in recent months: Palantir’s stock can swing quickly when Wall Street highlights new government wins, AI product momentum, or partnership announcements.

In the coverage, D.A. Davidson analyst Gil Luria framed Palantir as having an “AI moat,” essentially arguing that the company’s software stack and deployment experience can help it defend business as more AI competition emerges. The same reports said the upgrade included a higher valuation view, with a price target raised to $175.

Several business developments were cited as part of the bullish case. One item highlighted was Palantir’s expanded partnership with Nvidia, described as aimed at building custom “sovereign” AI models for U.S. government agencies. Another was a defense selection, with reports saying the U.S. Army chose Palantir Foundry as the core cloud data layer for its Next Generation Command and Control modernization program (known as NGC2). Foundry is Palantir’s platform for connecting and operationalizing data to support decision-making and operational workflows.

The upgrade discussion also pointed to deeper commercial activity. Reports said Palantir took a 7.4% stake in Surf Air Mobility, described as part of a broader push to develop an AI-powered operating system for private aviation. While the exact commercial terms and timeline were not detailed in the market coverage, the stake was presented as an example of Palantir expanding outside government and into applied AI for specific industries.

Beyond the cited contracts and partnerships, the key catalyst for Thursday was straightforward: an analyst rating change. Trading in the shares reflected that the market saw the upgrade as a meaningful announcement, with multiple outlets reporting the stock was up several percent soon after the news broke. One outlet also described the stock as recently volatile, a reminder that Palantir often reacts strongly to incremental changes in expectations rather than only major quarterly results.

In broader sector context, the upgrade underscores how investors are treating “AI orchestration” and enterprise deployment as a differentiator. Palantir has positioned itself as a software provider that can turn messy data into usable workflows, including for government customers where security, governance, and integration requirements are strict. In that framing, partnerships with major chip suppliers like Nvidia and platform selections like the U.S. Army’s can be used as evidence that Palantir’s system is being adopted for real-world AI operations rather than only pilots.

Still, several specifics remain unclear from the coverage alone. The market posts did not include detailed contract values, contract duration, or expected revenue impact, and they did not provide updated financial guidance. Investors typically look for those details in company filings, investor presentations, or the next earnings release, especially after analyst changes that can move sentiment faster than fundamentals.

What to watch next is whether Palantir can translate the cited partnership and platform selections into measurable results, such as sustained commercial growth and continued government adoption. For equity holders, the immediate follow-up is also whether other analysts issue aligned notes after D.A. Davidson’s change, and whether the company provides additional disclosure about NGC2 scope, Nvidia-related deliverables, and the operational roadmap tied to the Surf Air Mobility effort.