Palantir Stock Hits Record High Despite Political Drama and Media Scrutiny

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Palantir Continues Strong Rally in 2025

Palantir Technologies (PLTR) reached a new all-time high on Wednesday, pushing past political controversies and a critical article in The New York Times. The stock rose over 2.5% during trading, hitting $139 in morning hours and settling around $136.23 in the afternoon—a new high-water mark for the company.

So far in 2025, Palantir’s stock has jumped 81%, building on significant gains from 2024. The surge reflects growing investor confidence that the data analytics firm will benefit from stronger ties to the U.S. government and rising interest in generative artificial intelligence (AI).

NYT Raises Concerns Over Government Ties

A New York Times report published on May 30 revealed that the Trump administration is preparing to engage Palantir to help federal agencies share and manage data. The article indicated that Palantir is in discussions with both the Social Security Administration and the Internal Revenue Service. While the prospect of expanded government contracts excited some investors, the report raised concerns about privacy, surveillance, and oversight.

In response, Palantir pushed back against the claims. In a post on X (formerly Twitter), the company stated:

“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.”

The company emphasized that it follows strict compliance protocols and operates with transparency.

Elon Musk-Trump Rift Briefly Weighs on Tech Stocks

Palantir stock faced temporary pressure last week amid a public spat between Tesla CEO Elon Musk and former President Donald Trump. The dispute led to a dip in both Tesla and Palantir shares, raising concerns over political interference in the tech sector.

However, the situation stabilized after Musk issued a statement on social media, acknowledging that his past comments about Trump “went too far.” The move helped ease investor concerns, allowing Palantir’s shares to recover and advance.

The situation highlighted the deep connections between Palantir and Trump-aligned figures. Co-founder Peter Thiel has long supported Trump, and several former Trump aides are now affiliated with Palantir, including David Sacks, recently appointed as the White House’s head of AI and cryptocurrency policy. Musk, Sacks, and Thiel previously collaborated as part of the founding team at PayPal.

Musk also recently stepped down from his role at the Department of Government Efficiency (DOGE), a Trump-backed initiative focused on reducing federal costs.

Strong Technical Indicators Support Bullish Outlook

Palantir’s market momentum is further validated by its technical ratings. The stock currently boasts a Relative Strength Rating of 99, the highest possible score, indicating exceptional performance relative to other publicly traded companies.

Its Accumulation/Distribution Rating stands at B-plus, a sign that institutional investors have been steadily buying shares over the past several weeks. A rating of A+ reflects strong institutional demand, while E signals heavy selling.

Palantir also holds a Composite Rating of 99, which combines various performance factors—such as earnings, price performance, and institutional ownership—into a single score. This rating places Palantir among the top-tier growth stocks in the market.

Volatility Measured by Average True Range

Another metric investors are watching is Palantir’s Average True Range (ATR), which currently sits at 5.11% over a 21-day period. ATR is a key tool for measuring a stock’s volatility. A higher ATR indicates bigger price swings, which can affect short-term trading decisions and risk assessments.

IBD recommends monitoring stocks with ATRs of up to 8% for optimal balance between momentum and risk. At 5.11%, Palantir remains within a healthy volatility range, making it attractive to both institutional and retail traders.

AI Buzz Continues to Drive Investor Interest

Investor enthusiasm for artificial intelligence is also playing a major role in Palantir’s ascent. While the company’s commercial AI revenues are still in early stages, the broader market sees Palantir as a leading player in AI-powered government and enterprise solutions.

Palantir’s Foundry and Gotham platforms are central to how agencies manage large-scale data operations. As demand for AI accelerates across both public and private sectors, Palantir is well-positioned to capitalize on new business opportunities.

What Lies Ahead for Palantir?

Palantir’s combination of political connections, strong technical fundamentals, and association with key technology trends continues to drive momentum. Despite facing criticism from media outlets and navigating political distractions, the company is proving resilient in both market performance and investor sentiment.

Though some skepticism remains over its valuation and the speed at which commercial AI revenue will grow, analysts and traders are watching closely for further developments—particularly around new federal contracts and expanding enterprise adoption.

As 2025 unfolds, Palantir remains one of the most closely watched tech stocks on Wall Street.

Follow Reinhardt Krause on X (@reinhardtk_tech) for updates on AI, cybersecurity, quantum computing, and cloud software trends.

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