Palantir Technologies (PLTR): Evaluating Valuation Following Strategic Partnerships with NVIDIA, Poland, and Lumen Technologies

Palantir Technologies (PLTR) just announced a new collaboration with NVIDIA, bringing accelerated computing directly into Palantir’s AI Platform for enterprise and government customers. This partnership, along with new deals in defense and network infrastructure, highlights Palantir’s expanding reach and demand for its AI solutions.

See our latest analysis for Palantir Technologies.

Palantir Technologies’ share price has rocketed to new highs this year, rising 152% since January on the back of major defense contracts and high-profile partnerships like its latest deal with NVIDIA. Investors have taken notice amid momentum in AI and commercial adoption, as total shareholder return stands at a remarkable 322% over the past 12 months and more than 2,000% over three years. This underscores long-term confidence even as some voice caution about lofty valuations.

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With the stock already up over 150% this year and investor optimism running high, the real question now is whether Palantir shares still offer upside or if the market has already priced in years of anticipated growth.

Most Popular Narrative: 69.8% Overvalued

Palantir’s current price of $189.60 stands far above the narrative fair value of $111.66, indicating a significant gap between market optimism and calculated outlook. According to the narrative by BlackGoat, the latest quarterly results set a new high bar; however, the share price already reflects extremely aggressive assumptions. What key growth projections are driving this tension?

Even when factoring in flawless execution and strong future growth, the stock appears overvalued following recent price surges. The current valuation reflects the market’s high growth expectations, reinforced by the latest results, but retail-driven exuberance has likely pushed the price to unsustainable levels.

Read the complete narrative.

Want to know the growth blueprint behind this high valuation? The key element of this narrative is record-breaking earnings and a future profit multiple usually associated with tech leaders. Interested in which bold financial projections support that price target? Dive deeper to see the surprising numbers that drive this fair value calculation.

Result: Fair Value of $111.66 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, including Palantir’s heavy reliance on government contracts and high expectations for flawless revenue execution. Either of these factors could sway sentiment.

Find out about the key risks to this Palantir Technologies narrative.

Build Your Own Palantir Technologies Narrative

If you see things differently or want to dig into the numbers yourself, you can build your own Palantir story in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Palantir Technologies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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