Palantir Stock Hits Record High, Approaches $300 Billion Market Cap

Palantir (PLTR) shares surged nearly 9% in afternoon trade on Tuesday as the stock rebounded from Monday’s dip, building on momentum earlier in the week. 

The jump comes after air taxi manufacturer Archer Aviation (ACHR) announced that it's teaming up with Palantir to use artificial intelligence (AI) to improve a range of its aviation systems during its first quarter (Q1) earnings results. 

Archer Aviation’s stock rallied over 21% after the announcement and earnings beat.

If Palantir’s stock holds its gains, it will surpass $300 billion in market capitalization for the first time in its history.

On Monday, Bank of America (BofA) increased the stock's price target to $150 from $125 and maintained a ‘Buy’ rating.

BofA said that Palantir has differentiated itself from companies that continue to announce AI initiatives, product developments, and integrations, while in reality, the tools are often “ChatGPT wrappers.”

It also added that the company is creating “outcome-focused bespoke AI-enabled products, at scale,” noting that the pace at which it can deploy its products and convert customers is accelerating. 

Palantir’s stock has jumped nearly 70% year-to-date and has gained 526% over the past 12 months. 

The Invesco QQQ Trust (QQQ), which tracks the tech-heavy Nasdaq 100, rose more than 1.6% in afternoon trade, buoyed by a rally in tech shares, led by the AI bellwether Nvidia (NVDA).

Nvidia announced a deal with Saudi Arabia’s sovereign wealth fund-owned AI startup Humain to build AI factories with a projected capacity of 500 megawatts (MW).

Shares of Advanced Micro Devices (AMD) also gained after the company announced a separate deal with Humain to invest over $10 billion in AI infrastructure in Saudi Arabia over the next five years.

However, the SPDR Dow Jones Industrial Average ETF (DIA) remained in the red, edging 0.38% lower.

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