Palantir Stock Set To Break Hottest Streak In Nearly A Year — Could Pentagon’s Anthropic Rift Derail It?

• Palantir investors are looking at developments regarding the government’s ban on using Anthropic’s technology in the defence sector and how it affects Palantir.
• A new Reuters report said Anthropic has made a last-ditch effort to negotiate a new deal, after the U.S. last week designated it a supply chain risk.
• Anthropic's defence platform, Maven, used Anthropic’s Claude AI and unwinding it would require time and resources.

Shares of Palantir Technologies, Inc. edged 0.4% lower in early premarket trading on Thursday, putting the stock on track to snap a six-day winning streak fueled by investors piling into defense-linked companies amid the escalating U.S.-Israel-Iran conflict. 

Palantir stock gained nearly 20% over this streak, climbing to a one-month high, with the premarket move suggesting that some investors were booking profits. It’s likely that PLTR would miss breaking its previous best streak from late April, when it rose for seven days straight.

Palantir also finds itself in a unique position, given the U.S. government’s move to designate AI firm Anthropic as a supply chain risk, which means Anthropic technology would not be used by the government or any of its contractors. 

How Palantir Is Affected From US Govt Ban On Anthropic

Palantir’s AI-driven defense platform, Maven Smart Systems, has integrated Anthropic’s Claude AI model to assist with intelligence, targeting, and military decision workflows. It would have to replace Claude with an AI model from a competitor, which might cause short-term issues and costs. A definitive estimate of the disruption is not available.

Meanwhile, the Financial Times reported late Wednesday that Anthropic is making a last-ditch attempt to strike a deal with the US defence department. Agreeing on a new contract would enable the US military to continue using Anthropic’s technology and greatly reduce the risk of being frozen out of the military’s supply chain.

Retail Remains Upbeat

As the Anthropic issue drags on, retail investors have been debating its implications for Palantir. On Stocktwits, message volume for the PLTR ticker has surged 10% over the past week. The retail sentiment was ‘bullish’ as of early Thursday, unchanged since the prior day.

“Palantir is still just getting started..think about it we haven’t seen their best days yet… stay invested!” a user said, while another forecast a sharp rally as the war subsides. “we are back in bull market! Buy buy buy,” said a third user.

'Painful Task' To Replace Claude From PTLR Platform

On Wednesday, Reuters reported that Palantir’s task of replacing Claude in its systems would be “painful,” as its Maven platform uses multiple prompts and workflows built on Anthropic's Claude code.

According to the report, which cited unnamed sources, Palantir would have to rebuild parts of its software, and it is unclear how long that would take.

Analysts’ View On PLTR Mixed

For now, analysts' views are mixed. Fifteen on 28 recommend a ‘Buy’ or higher on the stock, 11 recommend ‘Hold,’ and two recommend ‘Sell’ or lower, according to Koyfin. Their average price target of $186.41 implies an upside of 22% from the stock’s last close.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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