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Palantir Caps 2025 With Defense Wins, Nvidia Power Pact and Intensifying Valuation Scrutiny

Fresh government contracts reinforce momentum as Bank of America stays bullish.

Overview

  • Palantir shares have risen about 136% in 2025, lifting its market value above $400 billion and into the S&P 500’s top 20 by size.
  • Q3 results topped expectations with EPS of $0.21 on revenue of $1.18 billion (~63% year over year), and guidance calls for $1.327–$1.331 billion in Q4 and roughly $4.4 billion for the full year.
  • Palantir, Nvidia and CenterPoint launched Chain Reaction to accelerate power availability for AI data centers, targeting a constraint Deloitte estimates could push U.S. AI power demand to about 123 gigawatts by 2035.
  • Defense momentum advanced with a U.S. Navy program across the Maritime Industrial Base and a three-year renewal with France’s DGSI, alongside BofA’s reiterated Buy rating.
  • Skeptics highlight extreme valuation levels — roughly 120x sales and a trailing P/E above 400 — with some commentary predicting a potential 2026 pullback even as U.S. commercial growth remains strong.