Palantir Stock Hits New High. AI Stock Weathers New York Times Article, Musk Drama

Strong 2025 Performance for Palantir Stock

Palantir Technologies (PLTR) continued its impressive stock market run in 2025, reaching a new all-time high on Wednesday. Despite facing scrutiny from the New York Times and ongoing drama involving former President Donald Trump and Tesla CEO Elon Musk, Palantir’s stock performance showed resilience. The company’s shares surged to over $139 in the morning and held steady at $136.23 in afternoon trading, reflecting a 2.5% gain for the day.

So far in 2025, Palantir stock has soared by 81%, following a successful 2024. Investors remain optimistic about the company’s growth prospects, particularly its increasing involvement with U.S. government contracts and its role in the rapidly evolving artificial intelligence (AI) space.

Government Deals Drive Investor Optimism

Much of the enthusiasm for Palantir stems from its deepening ties with the U.S. government. According to a New York Times report published on May 30, the Trump administration is planning to enlist Palantir to facilitate data sharing among federal agencies. The report highlighted ongoing negotiations with the Social Security Administration and the Internal Revenue Service, fueling expectations of lucrative government contracts.

Despite the promising outlook, the Times raised concerns regarding privacy and oversight. Investors initially responded with caution, causing the stock to waver. However, the long-term potential of expanded government partnerships has largely overshadowed these worries.

In response to the article, Palantir addressed the criticism via social media platform X (formerly Twitter), stating:

“Palantir never collects data to unlawfully surveil Americans, and our Foundry platform employs granular security protections. If the facts were on its side, the New York Times would not have needed to twist the truth.”

Elon Musk Controversy and Market Reaction

Palantir’s stock dipped last week following a public dispute between Elon Musk and Donald Trump. Tesla stock also declined amid the spat, raising concerns about the broader market impact of tech-political clashes. However, the market rebounded after Musk walked back some of his statements.

In a conciliatory post, Musk acknowledged that his previous comments about Trump “went too far,” helping to restore some investor confidence. Palantir shares climbed again as tensions eased.

The company has significant ties to Trump-era officials and influential tech figures. Palantir co-founder Peter Thiel is a well-known supporter of Trump. Other Trump allies, including David Sacks—recently named as the White House AI and cryptocurrency czar—have longstanding connections with Palantir. Musk, Thiel, and Sacks are also linked through their early involvement with PayPal.

Musk’s recent resignation from the cost-cutting government initiative known as DOGE (Department of Government Efficiency) adds another layer of intrigue to the unfolding political-tech narrative.

Technical Indicators Point to Strength

Palantir’s technical ratings underline its market momentum. The stock currently holds a Relative Strength Rating (RSR) of 99, the highest possible score, indicating superior price performance compared to other stocks.

Its Accumulation/Distribution Rating sits at B-plus, suggesting that institutional investors have been buying the stock at a healthy pace over the last 13 weeks. A rating of A+ reflects strong institutional buying, while E would indicate heavy selling.

Moreover, Palantir’s Composite Rating is also 99 out of 99. This rating combines five key performance metrics, helping investors quickly assess the overall strength of a stock. According to Investor’s Business Daily (IBD), the best growth stocks usually carry a Composite Rating of 90 or higher.

Measuring Volatility with ATR

Another useful metric in understanding Palantir’s behavior is its Average True Range (ATR), which currently stands at 5.11% over a 21-day period. ATR measures daily price fluctuations, helping investors gauge a stock’s volatility. Palantir’s ATR suggests moderately high movement, which can trigger sell-offs during market stress or attract short-term traders.

IBD recommends investors look for stocks with ATRs up to 8%, as higher ranges may indicate unstable price behavior. Palantir, while volatile, remains within this recommended range, making it a viable pick for both growth and swing traders.

Retail Hype Meets Institutional Interest

Retail enthusiasm, particularly surrounding generative AI, has played a critical role in Palantir’s rally. While the company’s commercial revenue from AI applications is still in early stages, investor excitement around its potential has helped sustain high demand for the stock.

At the same time, institutional interest is strong, with funds recognizing Palantir as a key player in both national security and enterprise AI markets. As the AI landscape matures, Palantir is positioned to leverage its expertise in data analytics to secure additional public and private contracts.

Looking Ahead

Palantir’s ability to navigate political controversy while posting record highs speaks to the strength of its brand and the confidence of its investor base. With close ties to Trump-aligned figures, increasing government interest, and a growing role in AI, the company continues to be a lightning rod in both financial and political circles.

While some analysts remain cautious about its lofty valuation and unproven commercial AI revenue streams, the technical indicators and momentum suggest that Palantir is far from slowing down.

For ongoing updates on artificial intelligence, cybersecurity, and cloud computing trends, follow Reinhardt Krause on X at @reinhardtk_tech.