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Palantir Rises as 'Chain Reaction' Pact With Nvidia Targets AI Power Bottlenecks

Investors weigh rapid growth with strong cash generation versus fresh warnings of steep downside.

Overview

  • Shares hovered around $182 on Tuesday, up roughly 7% over the past five sessions as momentum improved following the new infrastructure push.
  • Palantir, Nvidia and CenterPoint unveiled Chain Reaction on Dec. 4, a software platform to coordinate permitting, supply chains and construction to accelerate gigawatt‑scale AI data centers and ease power‑grid constraints.
  • Recent results featured 63% year‑over‑year revenue growth, a raised outlook, a Rule of 40 near 114%, and trailing free‑cash‑flow margins around 47%, with U.S. commercial revenue accelerating.
  • Bank of America cited customer stickiness, noting a 40% year‑over‑year spending increase from Palantir’s top three clients, even as the stock trades at triple‑digit sales multiples far above Nvidia’s valuation.
  • Volatility continues with selective profit‑taking and bearish calls, including RBC’s $50 downside scenario and renewed attention on Michael Burry’s negative positioning.