"Big and Beautiful" Strong East Wind Blows "AI Application Myth" Palantir (PLTR.US) Stock Price Takes Off Again?

Wall Street is beginning to see the US data software giant Palantir Technologies Inc (PLTR.US), which focuses on "AI + data analysis," as a huge beneficiary of Donald Trump's massive tax legislation. If an investor is looking for AI stocks that can benefit from the recently passed "big and beautiful" tax legislation in Congress as well as Trump's tariffs and "manufacturing returning to the US" policy, then Palantir is undoubtedly the top choice stock. Dan Ives, senior analyst at Wedbush, recently said in a media interview that Palantir will be the key beneficiary of Donald Trump's "big and beautiful" tax legislation. "I believe it will be the first beneficiary of the tax legislation that the market will discover. I believe Palantir will be a huge beneficiary both now and in the future." Wedbush recently reiterated its "buy" rating on Palantir stock, with a target price as high as $160. "Palantir remains one of our favorite companies in the 'IVES AI 30' list. Its revolutionary artificial intelligence strategy is quickly becoming the key foundational platform that industries rely on as they venture into the application of artificial intelligence." In fact, Palantir's stock price has risen over 400% in the past year, making it a "bull market myth in the AI application software sector," but many analysts believe the stock still has room to rise, with some analysts giving a target price of $200. As of Wednesday's US stock market close, Palantir's stock price closed near $154, driven by the super-hot trend of AI application software globally, with a price increase of over 100% since the beginning of the year, placing its valuation at its highest historical level based on expected PE ratios. It is understood that the US government's "Warp Speed for Warships" plan is seen as one of the new catalysts for the stock. This large-scale defense industry project will use Palantir's AI-driven Foundry data analytics platform to utilize artificial intelligence application software ecosystems and digital technology to transform and upgrade the US Navy. Statistics show that in just the first quarter, the company won nearly 140 contracts worth over $1 million each for enterprises or the US government, including 31 large contracts worth over $10 million each in the defense industry. Palantir will also benefit from a large partnership with global IT consulting leader Accenture Plc Class A Federal Services (Accenture Federal Services, AFS), which will jointly develop large AI solutions for US federal agencies. Jackson Peak Capital stated in its first quarter 2025 investor letter that Palantir Technologies Inc, as a purely long event-driven trade, made a significant contribution to our investment performance. We have held this company since its fourth quarter earnings release and believe that the company will continue to surpass expectations and raise its outlook, which will attract investors after the Washington government announces new contract wins. It also benefits from market structure dynamics - insufficient institutional allocation, and joining the Nasdaq 100 index in December, bringing in significant incremental funds from index-based ETFs. Benefiting from the Trump "big and beautiful" legislation, as well as the support of "Tesla, Inc.-like faithful followers," will Palantir's journey to new highs continue? The Trump "big and beautiful" legislation is expected to become a core catalyst for Palantir's fundamental expansion and the new round of soaring stock prices, while another driving force for the stock to hit new highs is the growing number of devoted followers who have been likened to "Tesla, Inc.-like faithful followers" since 2024, who continue to buy the stock, driving the data analysis software company to achieve consecutive record highs in closing prices for multiple trading days. Why are long-term devotees who follow Palantir being viewed as "Tesla, Inc.-like faithful followers" by some institutions? This is mainly due to their obsession with the grand narrative logic of the technology company (such as Tesla, Inc. fans' outlook on Tesla, Inc.'s energy storage systems, humanoid Siasun Robot&Automation, and AI autonomous driving prospects, and Palantir investors' outlook on Palantir's AI application grand narrative), which far outweighs their focus on traditional valuation indicators; retail and institutional fans collectively boost the stock price, pushing Palantir's trading momentum and P/E ratio to extreme levels, similar to the early Tesla, Inc. investment group's willingness to pay for a grand vision. Paul Marino, Chief Revenue Officer at Themes ETFs, said in a recent interview, "You're starting to see a similar 'Tesla, Inc. effect'; valuation is no longer important because the company has a large number of true bullish believers." "These investors believe that Palantir presents significant opportunities in national defense systems, exchange data neutrality, data analysis, and artificial intelligence." The focus of global technology stock investment waves has begun to shift from computing power hardware to software, providing significant assistance to Palantir's valuation. In the future, killer AI applications that cover various industries on the B-side or C-side, as well as AI advertising and marketing service provider APPlovin and AI+ data analysis leader Palantir, have all announced strong performance data and future performance prospects. This means that not only is there an incredibly strong demand for AI infrastructure based on AI GPUs such as NVIDIA Corporation, but also a strong demand for enterprise AI applications that can significantly improve operational efficiency, penetrating various industries faster and faster. Palantir's long-term cooperation with the US military is a core driver of the company's continued performance expansion, as its use of the Maven AI system developed for the US military's digital landscape has doubled, serving major intelligence agencies around the world. It has recently added NATO as a major customer and partnered with Freddie Mac to launch an AI-driven crime detection tool. The company is also actively expanding its commercial users and international clients, both of which have tremendous growth potential. Who is Palantir and what groundbreaking products does it have in the field of artificial intelligence? Founded in 2003 by billionaire Peter Thiel, Palantir has long emphasized its strong partnership with the US government and its allies. All of the company's software products are used by almost all important branches of the US military and have become a core force in participating in the development of the country's military artificial intelligence projects. This US-based major data software giant based in Denver has developed from providing exclusive services to the US intelligence community to long-term cooperation with many government intelligence agencies in the US and its allies, as well as with various companies such as CBS, General Mills, Aramark Services, Panasonic North America, and Cummins Inc. Palantir first gained global fame for providing critical data and situation analysis support to the US government in the pursuit and killing of Osama bin Laden, although Palantir has never confirmed this, it is widely believed by the media and military enthusiasts that Palantir played an important role in this process. Palantir's introduction of the Palantir AI platform (AIP) in 2023 has been widely acclaimed and has been used on a large scale by over 100 organizations globally, including the healthcare and automotive industries. The company is also in negotiations with over 300 additional companies. The core selling point of the AIP platform is not just developing large language models (LLMs) like Palantir, but more towards AI applications. This platform also includes AI assistants similar to ChatGPT, which can help companies analyze and make decisions on their big data business efficiently and help customers access Palantir's modules and functions in an easy and efficient way with low technical thresholds. Palantir's generative AI platform "AIP" is fully integrated with the existing data analysis software ecosystem of Palantir, allowing customers to call Palantir's core modules and functions through simple questions and answers, enabling organizations to effectively apply generative artificial intelligence to data analysis, enhancing insight and operational efficiency. The platform supports a range of AI-driven applications, from automated material shortage management and logistics and supply chain optimization to predictive maintenance and threat detection in complex computing scenarios. Palantir's rapid expansion of stock prices since 2023 undoubtedly lies in the company's expanding influence in the field of artificial intelligence applications, as well as the significantly increased demand for the company's unique artificial intelligence ecosystem and exclusive AI application software by the market. Palantir's largest customers are the US government and major intelligence agencies globally, as well as earning massive revenues from large companies worldwide. As Silicon Valley embraces defense technology companies, Palantir has expanded its cooperation with other technology companies. The company has strengthened its existing partnership with weapons manufacturer Anduril Industries Inc. and established a new partnership with AI startup Anthropic to introduce its large language model (LLM) into US intelligence and defense operations. These initiatives mark the beginning of what Palantir executives envision as a "new US defense ecosystem led by software-first companies rather than traditional defense technology companies".